Dear Editor,
“Global labour markets have rebalanced,” Goldman Sachs Research Chief Economist Jan Hatzius writes in the team’s report titled “Macro Outlook 2025: Tailwinds (Probably) Trump Tariffs.” “Inflation has continued to trend down and is now within striking distance of central bank targets. And most central banks are well into the process of cutting interest rates back to more normal levels.” “Goldman Sachs Research expects the US Federal Reserve to cut its policy rate to 3.25-3.5% (from 4.5% to 4.75% now)”. (Reference: Goldman Sachs Nov. 2024)
CRG’s proposal:
Increase savings during the first half of 2025 (H1) to take advantage of favourable interest rates and increase investment in development in H2 as commodity prices decrease to help ease inflationary pressure.
Only essential development projects should be implemented during this period of high uncertainty. Gain trade agreements with the U.S. to avoid tariffs and strengthen agreements with Europe as they seek alternatives.
The timing is good for currency and gold reserves to expand. This will maintain strength in our exports while also improving our cost position for commodities that support the continued growth in the construction sector.
A balanced budgetary approach should be taken and loans avoided so as to prevent dilution of earnings. Reverting back to the previous First Schedule of the Natural Resource Fund (NRF) Act would be prudent and more supportive of long-term growth. This will further support the continued disposable income initiatives in place and allow for the continuing of the cash grant program.
This proposed economic growth strategy and budgetary approach, will create a favourable inflation rate that will help consumers get more value for their money while also reducing consumer costs.
Sincerely,
Jamil Changlee
Chairman
The Cooperative Republicans of Guyana
