A Comprehensive Review
of Guyana’s 2018
Imports & Exports
By Marissa Lowden
The Bureau of Statistics cites that total imports to
Guyana from January to June 2018 is US$923,859.3
while exports constitute US$709,463.5.
THE MINISTRY OF FINANCE, MID-YEAR REPORT 2018
IMPORTS
The Ministry of Finance, Mid-Year Report 2018 reports
that Guyana’s economy is expected to grow by 4.5 percent.
This growth is as a result of vigorous performances in
agriculture, fishing and forestry, of 3.4 percent; services, of
8.2 percent; and construction, of 13.4 percent.
Guyana has seen an increase of building imports by 24.7
percent which reflects the significant surge in the construction
sector that is buttressed by the increased pace of execution
of the Public Sector Investment Programme (PSIP), which
rose by 3.9 percentage points above the previous half year.
As a result of higher trade in imported final consumption
goods, intermediate goods and capital goods, the services
sector promulgated by 8.2 percent at the half year.
Growth in imports was driven by an overall expansion in
all major categories – intermediate goods, by US$92.6M;
capital goods, by US$41.1M; and consumption goods, by
US$3.6M.
During the first half of 2018, the total value of intermediate
goods was US$505.3M as compared to US$412.8M in
- This expansion was primarily driven by growth in
the import of fuel and lubricants, which increased from
US$182.4M to US$239M over the review period due
to significantly higher prices. There was also noticeable
growth in the other subcategories of intermediate goods,
with the exception of textiles and fabrics, which declined
by US$0.2M, while “other intermediate goods” and food
for intermediate use expanded markedly by US$10.7M and
US$10.1M, respectively.
Growth in the total value of imported capital goods was
driven by an increase in the value of all subcategories, with
the exception of agricultural machinery, which decreased by
US$5.6M during the first half compared to the similar period
in 2017. Within the overall category, substantial growth
was recorded for mining machinery, “other capital goods”
and industrial machinery, which expanded by US$13.9M,
US$10.6M and US$9.7M, respectively.
The expansion of imports of consumption goods
was mainly due to significant growth in food for final
consumption and other durables, which increased by
US$9.2M and US$8.2M respectively over the reporting
period. Further growth in this category was limited by a
reduction of US$22.8M in the value of “other nondurable”
goods imported.
EXPORTS
Even though there was a growth of US$31.9M in total
export earnings for the half year, it was not sufficient to offset
the more significant expansion in total import payments.
This growth was as a result of an increase in rice and bauxite
exports which expanded by US$33.9M and US$14.9M
respectively, supported by an increase in both volumes and
prices.
Growth in rice export volumes increased by 42.6
percent to 289,880 metric tonnes and was as a result of
further penetration into the Cuban, Mexican and other
markets. Additionally, export earnings increased from fish
and shrimp, and rum and other spirits, within the “other
exports” subcategory, which recorded growth of US$6.8M
and US$3.6M respectively.
In contrast, receipts from the other major export
commodities – gold and sugar – declined during the first
half of 2018 compared to the first half of 2017, by US$19M
and US$9.6M respectively. The decline in export earnings
from gold was mainly due to lower export volumes, which
decreased by 12.8 percent between half-years to 282,615
troy ounces. This unfavorable outturn was largely due to
challenges faced by the Guyana Gold Board (GGB) with
respect to gold smelting and the attainment of a cost-efficient
quantity of gold for export.
At the end of 2018, the overall balance of payments
is projected to record a higher deficit of US$182.1M
when compared with 2017. The current account balance
is expected to weaken to a deficit of US$366.3M, driven
largely by fuel imports, while the capital account is expected
to post a lower surplus of US$184.1M.
WHY ARE IMPORTS AND EXPORTS IMPORTANT?
National economies and the global market grow because
of the exportation and importation of goods and services.
Each country has its own advantages in resources and
skills. In Guyana’s case, there is an abundance of natural
resources, with an extensive tropical forest covering more
than 87 percent of the country’s territory.
Imports are important for businesses and individual
consumers. Guyanese usually depend on imported goods
that are not easily available locally or are available at a
cheaper price overseas. Additionally, imported products
also offer a wider variety to consumers which all bode well
for improved standard of living.
However, any country would prefer to be a net exporter
rather than a net importer. While importing provides perks
such as access to important resources and products at
affordable costs that are not otherwise available locally, too
much of it will be bad for the economy. If you import more,
than you export, more money is leaving the country than is
coming in through export sales.
More exports mean more production, jobs and revenue
for the domestic economy. If a country is a net exporter, its
gross domestic product increases, which is the total value of
the finished goods and services it produces in a given period
of time. In other words, net exports increase the wealth of
a country.
In 2019, the Government of Guyana intends to commit
to stimulating investment in our manufacturing sector
and exports. As such, the overall balance of payments is
expected to improve substantially to a surplus of US$15M.
This is primarily due to growth of the capital account to a
surplus of US$376.2M, and the current account improving
to a lower deficit of US$361.2M. Higher net inflows to the
private sector in the form of foreign direct investment will
likely be responsible for the higher projected surplus on the
capital account. The improvement on the current account
will be supported by a lower merchandise trade deficit of
US$256.4M as total export earnings are projected to increase
amid higher commodity prices and increased production in
- Furthermore, total import payments are expected to
grow marginally by 0.8 percent, also contributing to the
improvement of the current account.
IMPROVING THE IMPORT &
EXPORT PROCESSING SYSTEM
As part of improving the system to process imports and
exports, plans are underway to adapt the Trinidad and
Tobago model of the Electronic Single Window (ESW) under a
project being facilitated by the Inter-American Development
Bank (IDB) and with funding from South Korea so as to allow
Guyana to better compete in the global market. The Single
Window is a global platform that facilitates standardized
information from State agencies on trade and transport so as
to expedite the regulatory process.
In February 2018, a multi-stakeholder meeting consisting
of key players such as the Ministry of Foreign Affairs, the
Guyana Police Force, the Guyana Revenue Authority, the
Guyana Office for Investment (GO-Invest), the Ministry of
Business, the Ministry of Finance and the Private Sector, was
held to examine and deliberate on the model.
In 2009, feasibility studies were conducted by a United
Kingdom-based Crown Agents Consultancy Survey on
the implementation of the Single Window in Guyana.
Consequently, recommendation was made to look at drafting
Single Window legislation and establishing specific rules for
data-sharing between Government and the Private Sector.
The ESW is not only expected to reduce the time to
process trade documentations, but it is also expected to
improve Guyana’s ranking on the ‘Ease of Doing Business
Index’. Guyana currently ranks 134 out of 190 countries.
