Guyana’s Manufacturing sector ‘booms’ in first half of 2021

• Production within Guyana’s manufacturing sector remained positive throughout the first half of 2021, with output increasing 13.1%, according to the Bank of Guyana.
• Based on statistics from the Central Bank’s mid-year report, this performance is a significant improvement, considering that the sector contracted by 0.2% at the end of the corresponding period last year.
• According to the central bank “This outturn reflected a 23.1 per cent rise in output of ‘other’ manufacturing, and 3.1 per cent increase in rice manufacturing, which together offset the decline of 17.2 per cent in the value-added of sugar.”
• “Other manufacturing industries registered increases in the categories of alcoholic beverages by 48.0 per cent; paints by 34.3 per cent; Malta by 20.3 per cent; liquid pharmaceuticals by 10.4 per cent; nonalcoholic beverages by 9.4 per cent; and electricity by 3.8 per cent, as economic activity thrived due to the reopening of the economy,” the Bank related.
• The improvement in the manufacturing sector will support the country’s projected 21.1% growth rate. After expanding by 43.5% in 2020, Guyana will be a regional and global growth outperformer in 2021 and 2022 as well. While this growth in manufacturing will influence the 2021 expansion, surging oil production and inbound investment will be the main drivers of growth. Easing COVID-19 restrictions and government stimulus will also aid commercial activity in the short-to-medium term.

(Sources: Guyana Chronicle & NCBCM Research)