Seven pillars in trouble; Remittances see decrease – Finance Minister reports

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By Jomo Paul

L-R: Tracey Gibson, Dave Seeratan - OiC Caribbean Centre for Money and Finance, Dr Gobind Ganga, Head of Bank of Guyana and Finance Minister, Winston Jordan
L-R: Tracey Gibson, Dave Seeratan – OiC Caribbean Centre for Money and Finance, Dr Gobind Ganga, Head of Bank of Guyana and Finance Minister, Winston Jordan

[www.inewsguyana.com] – Remittances to Guyana have declined by a notable amount and it is causing some concern to Guyana’s government.

Finance Minister, Winston Jordan at the Annual Monetary Studies Conference, reported on the decrease in remittances which could have a negative impact on Guyana’s economy.

Remittances to Guyana are responsible for more than 25% of Guyana’s annual Gross Domestic Product (GDP).

“For the first time in recent memory, the six pillars that have been the foundation in the economy’s upbringing namely, sugar rice gold, bauxite diamond and timber have all suffered major setbacks. Even the seventh pillar – remittances which accounts for upwards of 25% GDP has also recorded declines,” said Jordan.

The Minister stated that across the Caribbean Region, the lives of many are dependent on remittances hence it is important for the money to be kept flowing.

“Remittances are critically important for poverty reduction across the region and every effort must be made to ensure that the region continues to have access.”

In 2014, remittances from the United States to Guyana totaled US$438 million, (G$ 90.7 billion). Trading Economics reports that remittances in Guyana are expected to be US$417.66 million by the end of this quarter.

Meanwhile, the Minister stated that there are certain international events over which there is no control that have the potential to negatively impact the region but this must change.

He charged the researches to find alternative means of entering the international markets should international banks close down on the Caribbean.

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