Guyana’s Economy Demonstrates Strength Despite Global Challenges
**Georgetown, Guyana** – To counter the effects of rising global food prices, President Mohamed Irfaan Ali announced on Friday that Guyana has implemented several fiscal measures. As a result, the country has managed to maintain a lower food inflation rate compared to other regions.
Global food prices have spiked due to the Russia-Ukraine war and the COVID-19 pandemic, leading to significant increases in the European Union, Latin America and the Caribbean, and the United States. However, Guyana’s food inflation rate for 2023 was 3.8%, which is significantly lower than Jamaica’s 7.8% and the 81.67% seen in the wider Latin American region.
To combat rising food costs, the Guyanese government has prioritized enhancing domestic food production. This effort includes providing significant support to the poultry sector and farmers, such as VAT exemptions on fertilizers, agrochemicals, and pesticides. Additionally, over one billion dollars were allocated in 2023 for agricultural tools and equipment.
Other initiatives to boost food production include tax breaks on machinery and corporate income tax, as well as investments in infrastructure. The government has also established a broiler breeders facility to lessen dependence on imported hatching eggs.
To alleviate the broader economic impact of increased costs, the government has raised public sector wages by over 90 billion dollars and reinstated subsidies for utilities. They have also waived taxes on building materials and removed VAT on medical supplies, electricity, and water.
In support of low-income households, the government has reinstated the ‘Because We Care’ cash grant, increased pensions and public assistance, and provided a one-month tax-free bonus for public servants.
