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“Guyana is projected to grow at an average 25 per cent annually from 2023 to 2026, with growth in the non-oil sector projected at 7.9 per cent this year.” So said President Irfaan Ali. Guyana is touted among the world’s fastest growing economies, if not the fastest, depending on which report is used. However, in the midst of burgeoning economic growth, poverty is expanding.
A 2022 World Bank Fact Sheet Report said 48 per cent of Guyanese are living on less than US$5.50 per day which is equivalent to less than G$1200.00 per day. Cost of living has escalated to the point where it is beyond reach of the ordinary Guyana to eat three nutritious meal per day and meet other basic expenses such as transportation, rent/mortgage, water, electricity, and have a savings.
Within recent months the price for basic food items has increased astronomically. Below are a few examples:-
- Caribee rice: $1,300 – $1,950
- Fernleaf milk: $460 – $800
- Bora: $200 – $500
- Canola oil: $2,600 – $4,700
- 2 litre Coke: $380 – $520
- Sugar: $80- $200
- Bread: $240- $360
According to Ali the projected growth will build on the 11.5 per cent growth in the non-oil sector last year.
The boast of the country continuing to experience economic growth comes in spite of the pervasive poverty, low wages, salaries and pensions, and high unemployment.
Ali told the media on Wednesday the economy has almost tripled since the end of 2020, with the nominal Gross Domestic Product (GDP) moving from G$1.1 trillion in 2020 to G$3.1 trillion at the end of 2022.
“If you look at economic growth estimates, the world is estimated to grow at 2.8 per cent in 2023, advanced economies are expected to grow at 1.3 per cent, Latin America and the Caribbean, 1.6 per cent, Caribbean tourism-dependent countries at 3.2 per cent, Caribbean commodity exporters, 18.7 per cent. Guyana is expected to grow at 25.1 per cent” he boasted.
Whilst there has been economic growth, human development growth has lagged behind. According to the Bank Report in spite of Guyana’s wealth, poverty is expanding. The increased spending in education still sees lagging behind its Latin American and Caribbean counterparts. Guyana’s healthcare system also lagged behind its regional counterparts.
As per the Bank Report: –
A child born in Guyana today will only be 50 percent as productive when she grows up as she could be if she enjoyed complete education and full health. This is lower than the average for the Latin America and Caribbean (LAC) region and upper middle-income countries. The low human capital score is in part driven by low educational and health outcomes. Although the average Guyanese student is expected to complete 12.2 years of schooling, this is equivalent to only 6.8 years of learning when expressed in terms of Learning-Adjusted Years of Schooling (LAYS).
Guyana’s national poverty headcount, the share of the population living below US$5.5 a day, is among the highest in the Latin America and Caribbean (LAC) region at around 48 percent. Poverty rates are highest in the sparsely populated interior or hinterland, where communities have limited access to economic opportunities, healthcare, and public services. The country experiences high emigration and brain drain, with 39 percent of all Guyanese citizens currently residing abroad and roughly half of all Guyanese with a tertiary education having emigrated to the United States.
Guyana has the third highest prevalence of HIV/AIDS among countries in the Caribbean Community (CARICOM), ranks in the top five LAC countries with the highest tuberculosis incidence, and still faces serious malaria challenges. Furthermore, non-communicable diseases (NCDs) have become the major burden of morbidity and mortality for the population, accounting for a total of 70 percent of causes of deaths.
