Set out below are the principal announcements by the Minister on the economic performance in 2020 and the projections for 2021. For further elaboration of these, please see section 2021 Policy Issues and Targets on pages 15 to 19 and section Government of Guyana Financial Plan 2021 on pages 20 to 24.
2020
■ Overall Growth in Real GDP of 43.5% compared with an initial target of 48.4%. The non-oil economy contracted by 7.3%.
■ Inflation of 0.9% compared with an initial target of between -0.23 % and 0.7%.
■ The Central Bank rate of the Guyana Dollar to the US Dollar at December 31 2020 was $208.5, the same as at December 2019.
■ Average market mid-rates for the US Dollar at the Commercial Banks appreciated by 0.49% to $215.75 as at December 31, 2020.
■ Current revenue of $227.1 billion. Current expenditure of $241.6 billion, exclusive of interest.
■ Capital expenditure of $ 76,114 billion compared with budget of $72,070 billion.
■ Overall fiscal deficit of $103,004 billion compared with budgeted amount of $52,156 billion in 2019.
■ Overall balance of payments surplus of US$ 60.6 million compared with US$ 48.9 million deficit in 2019.
■ Increase in merchandise exports of US$2,587.4 million, while merchandise imports amounted to US$2,072.6 million.
■ Current account deficit of US$ $651.7 million, and a surplus of US$720.9 million in the capital account.
■ Gross external reserves of Bank of Guyana at the end of 2020 of US$680.60 million, an increase from US$575.9 million in 2019, or 18.1% representing 2 months of import cover at end-2020.
2021 Targets Size of the Budget: $383.1Bn, 16.2% increase
■ Growth of 20.9% in Real GDP, with the non-oil economy growing by 6.1%.
■ Projected inflation of 1.6%.
■ Current revenue of $266 billion, an increase of 17.1% and current expenditure of $256.7 billion, an increase of 6.2%.
■ Capital expenditure of $103.3 billion.
■ Overall fiscal deficit of $106,652.1 Million to be financed by domestic borrowings (71.3%) and external borrowings (28.7%).
■ Balance of Payment deficit of $59.9 million compared with surplus $ 60.6 million in 2020.
■ Merchandise exports to increase by 46.4% to US$3,788 million and imports to increase by 25.2% to US$2,595 million.
Ram & McRae’s Comments
● Guyana’s share of profit oil and royalty does not appear to be included in revenues. The amount is estimated to be in the region of about US$175 million, all of which is held abroad and earning a pittance in interest.
● Balance of payment projections include the share of oil revenues of Guyana as well as the share of the oil Companies.
● Overall deficit in financial operation is equivalent to 44% of total current and capital revenue.
● By convention balance of payment figures are always quoted in US dollars.