The economy is heading for a crash, this is according to Chairman of the Public Accounts Committee, Irfan Ali, when asked to describe the Bank of Guyana’s latest statistical abstract on the Bank’s website.
The figures show that the foreign reserves of the country has droped significantly from USD$825 million in 2012 to USD$498.5 million as of March 2018. 2017 figures of the abstract shows that the reserves plummeted well into the USD$500 range.
The country’s asset also declined, gold dropped to USD$1.9 billion as compared to USD$25 billion in 2014. The country’s total asset also showed an almost steady declined from 2017 to present, USD$216.6 billion in 2017 to USD$205.8 billion in March 2018.
Guyana’s foreign asset showed an almost steady decline for the first quarter of 2018, from USD$19.5 billion to USD$13.4 billion in March.
Further to this, the Asset and Liabilites account shows a negative $52.7 billion in overdraft, this means that the Gvoernment has been borrowing and cannot repay. In 2014, the Public deposit stood at some positive $24 billion. The statement showed a borrowing of $4billion in a matter of one week, when last checked.
These fears were confirmed by Finance Minister, Winston Jordan during his last press conference, where he noted that the country recorded a 2.1% economic growth rate as compared to a 3.8 prediction.
The government’s chief economist has noted that gold only produced 653,000 ounces and rice producing just over 630,000 tonnes in 2017.
Jordan said that revenues remain buoyant. However, there has been a significant decline in gold reserves and foreign reserve at the Bank of Guyana.
Jordan maintained that the country’s debt continues to be managed in an effective manner. The Minister assured that a projected target of 3.8% is expected in 2018, same as last year’s failed target. He also noted that the deficit in the GDP is good news and that the country’s debt is being managed effectively.