Manufacturing, Services sectors generated $515 billion in 2022

Guyana’s manufacturing sector generated over $55 billion while the services sector saw another $460 billion for the year 2022.

Rice and sugar accounted for “most” of the economic growth in the manufacturing sector and the boost in the services sector was credited to the higher demand for building materials and consumer goods in light of the ongoing housing and construction drive.

These revelations were made in the Guyana Manufacturing and Services Association (GMSA) Annual report for 2022 which was made available at their Annual General Meeting held on Friday at the Pegasus Hotel in Georgetown.

According to the report, during 2022, the manufacturing sector registered year-on-year growth of 3.9 per cent, a “negligible” increase of the 3.5 per cent realised in the previous year.

President of the Guyana Manufacturing and Services Association (GMSA), Rafeek Khan

“The comparatively low rate is attributed to the 18.9 per cent decline in sugar production and a 33 per cent decline in chemical production, particularly oxygen in 2022 which coincided with a decline in COVID-19 hospitalisations,” the report noted.

Nevertheless, it was noted that rice manufacturing increased by 2.8 per cent for 2022.

And, within the other manufacturing sub-sectors, there has been a 4.9 per cent growth of fabricated metal products, a 35.7 per cent growth in plastic products and a 98.8 per cent growth in paper products, the report highlighted.

And, this year, the report noted that manufacturing is projected to grow by 5.7 per cent.

“This growth will largely be driven by the growth in sugar manufacturing as it will recover and expand by 29.3 per cent, rice and other manufacturing will realise growth rated of 6.1 per cent and four per cent, respectively,” it noted.

Meanwhile, the report noted that the services sector generated $460 billion, thus expanding by nine per cent for the year 2022.

And it is forecasted that this year, the services sector will expand by a further 5.6 per cent.

According to the annual report, this sector is “pivotal” to the economy since it contributed almost 16 per cent of the Gross Domestic Product (GDP) and over 40 per cent of non-oil GDP.

The report identified the growth of wholesale and retail trade and repairs, administrative and support services, financial and insurance activities, real estate activities and storage and the “key drivers” for the expansion.

“Growth in wholesale and retail trade and repairs was largely driven by higher demand for building materials and consumer goods due to the ongoing housing and construction drive.

“Administrative and support services; the expansion was driven by greater activity related to the rental and leasing of construction machinery, increased economic activity in the business process outsourcing industry and higher demand for security services,” the report highlighted.