Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698071262464.pdf (Guyana)
BALANCE OF PAYMENTS OF GUYANA 1960 -1965 STATISTICAL BUREAU MINISTRY OF ECONOMIC DEVELOPMENT (C,G,P, & S. 750/87,) FOREWORD Within recent years, and particularly since Guyana in 1965 assumed responsibility and for the control of its Currency International Reserves, it has become urgent that reliable statements of the country's and Balance of Payments transactions be compiled publi�hed, with sufficient explanations to facilitate their use.
This then is an attempt for the first time to publish in a single document a statement of the Balance of Payments transactions of Guyana together with a brief description of tho Methods and Sources utilised.

Much of the Methodology was established ago on sometime the advice of a representative of the International Monetary Fund, and the general principles and underlying procedures have been those recoI!11!lended in the Balance of Payments Manual issued by the Fund.
However, all sources have not been fully developed and constant attention is.being given to the organisation of the basic sources of the information so that maximuo accuracy and comprehensiv e coverage could be achieved in the series produced.

An attempt has also been made to indicate the reli�bility that could generally be attached to most of the values.
It is therefore hoped that this document would go a long way to satisfy an important statistical need on the part of a wide number of users of Economic Statistics.

The material has been compiled by the staff of the Statistical Bureau.

A nunber of business firms and Government depnrtments nnd agencies have also assisted by providing valuable information and their co-operation is gratefully acknowledged.

F. E. Hope Chief Statistician.

LIST OF CONTENTS PAGE NO.
METHODOLOGY .AND SOURCES TABLE 1 -GUYANA: BALANCE OF PAYMENTS 1960 -1965 TRENDS IN THE BALANCE OF PAYMENtS 1960 -1965 TABLE 3 - A PRELIMINARY STATEMENT FOR 1966 .APPENDICES Appendix 1 -Guyana -Balance of Payments 1960 -1965 1 7 9 14 16 18 19 21 22 11 " II II II II II 2 -· Merchandise Transactions 3 • Other Services 4 -Central Government Payments 5 - Direct Asset Investment 6 - Price Indices of Imports and Exports and Terms of Trade 1960 -1966 23 7 - Price and Volune Indices of Major Exports 1960 -1965 8 -Price, Voll.lI!le and Value Indices 1960 -1965 Imports of 24 25 ** ** ** ** ** ** ** ** ** ** ** 1.
METHODOLOGY AND SOURCES Merchandise Tran$actions .

(Item l) - The v.alue of Imports ·/300 Expo.rts inc�uded in t�� Balance of Payments-were •.derived from Reports on t�e �ternal Trade of Guyana and are reported a.t 'their transactions value.

Imports are entered C.I�F-and Exports at their F.O.B.

natio,nal.

Merc�t Fleet.


Consequently, prioesJ ·Guyana has a.very limited inter­ all imports into the country practitmlly arri�e .. i.n :foreign o,med ships..-No study has beeri done ·to estimate the value of in®rance and·freight,in impo;i:-ts, coii:Seq:0.ently it has "been found more convenient .

not to attempt to separate insurance and freight from the total value of imports.
Both imports and exports' are valued at the point w:P,ere they cross'the Guyana cqverage of the Customs .statistics Customs frontier.

Generally, is good.

.

Oe�a.

:j_n coverage and valuation ad.justments have been :ma.de and these . '

- refer to Sugar Preference Cert:i,.ficates, ' .. : .

, .

goods on rental, the v�.ue of which has 1;>een ex.eluded.. Gold imports are not · usually included in the Impo1�� Statistics sary for these� ]'.igures_JC?.

:f e�ports include re-exports.


the Yalue of which has l;>ee:ri, added, and Ships' storef;!

ar.d therefore no adjustments.were necee� ' ' - - bunkers have been excluded a..�d have been carried to another item.

l'k>.n::.

:rf!Q.netm_Qg}.d (Item ;;) �':'.£i0t't� J.bfon/4•!bi'!�-b� Gold have been included in this item.

There are no credit entries because e�,P9 rts of gold are negligible.

Althbugh_;Gu y13na.
Althbugh_;Gu y13na.

_;ls::a •J, found :its' way to the forei:gn :rna.I,'ke_t.i within recent ye�s� · , count;ry, :li_ttl;e,:.-.or none of:.,the:.gold •ha.a ..

gQld.d.

:d:od;qcing I •.i.\ •::,•) •.

f,.

;.., \: •• ·· .. , • .

• .

• • , :,on !nteJ:_"!lati6nal �$hi���ntS (Item, 3)" .

:_ As was �{�di�ated in _ .

�- �.

_ , _.; , .

• _ .

.

� � .

.

.

· 1 \� .

.

.

__ _.

•.

·= ;',_ .

1 .. ,\_ 1 -�, ..... •: .

\ .

.

( l ' .� ' •.. --·•j _;_ !


:·.•�· � ,.. ,L�ieb.t.�d Ins-�t-anc� tll.e· previo,q1;1 paragraph, no attempt nas been mad.a to-separate F:te'ight ruid In- surance frQm importl;) -c, .. '1: .. f. Conseqv.en'tJ.y: receipts.

iihe� data have:.

b.een .

, .

·1 _, :.

·•· : �1 l .· ._ .. \· ·_i,··...

.

::'.•; , Cam:ganie* and tl;ley.

re.fer mainly-.to Freight:· of exports from Guyana.

Other Transport.

(It.wL..1,) - f'h!3 debits agai�t.

this,.

:i,�� were, derived ,ip.


?4n].y from data, on fa.r.�s-.cdllected .

.. •'t .

.,i .. l-i: - .-' • i_ -• .

; ., (;!

·1.

:, .

;�--.- "··, ·,t:-· ·-..... : •• :f'.

· ... 'j •• I; - - ' the entries against this item a.rs mainly ;.bl'.'

foreigri ,A.i,r and Shipping Lines or wex-e" estinlated deriveci' fro� �@lJdi:.ts ���ri�ed by resident' S:fi..ipp:i.�g paid to Guyanese Companies on account 1 -�;,;r .. , on the ,'l:msis 9f_ the ·m1ihb.er 0£, Guy?Jles!=) d�p�tix:ig .. f�om ,Guyana.
Since �q.e · 9oi..u;i.�ry has ,no.

: l'.nternational Sh:j.pping or< Ai;r Lines ,E!,11.

:-peyIQ.ents ;in respeqt.

of .

tr�-:: po:rtation were taken to have .been made tq, foreign compa.,ni�s._ ' .U.'

• .'

.. 2.

_1j.,t�m cover$ the -'�" of.

shipst stores.

'.

side tN31 94:J}'l� f?

;�se1.llts': ��-,rece�pt1;1, ¥+.· re,spect and � er�,1 �tn.E?
_d�3i, and expendi ?8 of $ips,k crews.· por.t and_ 1,�11> : Port ani "7�I_fd�me dues ar� ��ep:t;ed ,py-tne �vernm®t .. .aruL therefore reliable of-::i;,epairs :and s;3.rvicing :0£ Aircraft, Expenditure by ships' ,crews· are·,< howeve:r.>� figur .ee are available.

in .the country.

fairJ:y, estimated on co�paratively crude data and are .not to this extent very re1i�b;J.e.

Chorges for repairs and se:r:v;ic�ng are -�e:po-r�ed by the companies providing-the seryice.
Travel(Itw 21 -The Debits in this item relate to e:icpencU.ture Guyanese • .Again the figures a.re estimates travelling abroad made by based on the number of Guyanese reported as having le.ft .the "coun'tcy temporarily.

Therefore the margin of .error could pe fairiy wide.

The crediti3 on_ the other hand cover in Guyana �Y foreign visitors.

expanditures estimated on the basis of the expendi tuxes reported: -�·.

by the Statistical naires provided · :;ot visitors · 1:d t · on question.,;.
• • Bureau, and the number of visitors s.i'riv.i:pg Since 1964 the ·amounts have been in the �ountry.

The expenditures by intransit tourists are also incl�ded •..

Prior to 19f5, estimates were more arbitrarily basedo Investment_ .

I�come.

\Hem_.§) - A· large poi"�ion ., , .

Guyana is· dominated { • 'i .

!

by expatrrate • .

.

,,,.

,.

• : enterprises, ·o:t �tti;f�dome'?tic , ; \�I ,) � •, , , J • consequently, ·eoonomy of � J payments on account of Investment Income are.
coinffiiriahvely high each year.

T.nterest on Government i \ External Debt.is also debited as a payment of Investment Income.

There are also a number of firms that make interest payments abroad and these payments are in­ cluded as well.

The credits aJ;'e comparatively small and they represent receipts of interest earned on foreign securities held by local Insurance Companies,the Post Office Savings Bank, Build.i.ng Society, Government SinkL?

'i.g Funds and other Funds.


Quasi-Government So far as the Investment Income of' expatriate firms is c9ncerne�, the estimates are based on data of profits after tax supplied by expatriate resident finns, and are considered to be fairly reliable.

Intere�t on Government external debt are fi-rm figures provided by the Treasury.

Receipts bf Investmen,t Income, however, are estimated held on the basis of the face value of foreign securities 3. by the institutions .enumerated in the previous paragraph. '

.
.

Income.

No attempt Al:,l_profits-after-tax of expatriate .

.

has been made to allow for undistributed .. , .

.

firms are shown as lnvestment profits which .

may have been :re-invested.in the country, as such figures are not normally .

.

. '

.
.

. '

.

.., - available.-However, since the expatriate firms operate of parent companies abroad, it is considered reasonable distributed profits would not normally be held locally, under the control to assume that un� but would be at the disposal of the parent company, and would therefore be held abroad.

It is recognised that new fixed investment and probably replacement s of fixed assets as well may be financed from accumulated undistributed profits.
To the extent therefore that investments are so financed then the outflow of funds under Investment Income would tend to be partly offset by the inflow of funds under Direct InYestment paragraph to the.

treatment GovernmeJ1i.ilfs,t �lsewhere) in_£:lnded of depreciation allowances .· C-apital.

Re_ference is made in a later W :§_m_ll - The credits against this item comprise mainly the estimated expenditures in Guyana by U.K.
Troops, certain Government receipts from abroad and the expenditures of forein Con§!Ulates and Missions in Guyana.

The debits are mainly services which with the Guyana received under aid.

Certain expenditures in cormection operation of Missions abrbad, and the rental of certain equipment are also included.

The information on expenditures by U.K.

Troops are supplied by the Army Authorities in Guyana.

Foreign Consulates report their local expenditures to the Statistical Bureau.
Other information is secured from t.�e Financial Report of the Accountant General.

Data on services under aid are provided by the Government:i.granting such aid.

This figure is matched by a similar amount credited as a Unilateral Transfer.

Qi.her Services (l_tem-8) - This item covers a miscellaneous number of service items, the most important credits being cl13.imi;i paid in Guyana by branches of ' ,I • .
foreign Insurance Companies, Agency Fees and Commissions, Foreign Contractors' services and c�rtain other rec.eipts from abroad in connection with storage and stevedoring.

The debits cl.re mainly head office expenses incurred and paid by resident expatriate companies, premiums·collected by foreign Insurance Com­ 4. panies, claims paid by loc&l companies to Insurers abroad, certain fees and commissions, film rentals .

.

and payment in respect of pools.


Most of the inf'ormation is derived from 4uestionnaires sent to Insurance and other Com­ panies..

Figures compiled from these returns and included in this item are therefore considered to be fairly reliable • .

!Lnilateral Transfers (Items 9 & 10) - This item relates to transfer pa;y,nents and receipts by both private persons and Government.

So far as the private sector is concerned the credits are mainly Money Orders and gifts received from abroad.
The payments are mainly Money Orders sent abroad, private pensions paid abroad and an estimate of cash taken out by emigrants.

In the Government sector, Unilateral Transfers represent grants received by the Central Government from other Governments and International a sub­ .Agencies; stantial portion of this figure relates Kingdom and from the United States of .�.rnerica to C.D.

& w. Grants from the United mainly in the form of techni­ cal assistance.
peyments of gratuities and other Government The debits under Central_Govern.ment are mainly estimates of and pensions to for!Iler employees now residing abroad contributions to external agencies.

The figures relating to the Government sector have been derived from the Financial Accounts of the Accountant General» and are considered to be reliable though the figures for pensions are estimates.
Pensions paid abroad by private enterprises are reported annually to the Statistical Bureau, and the value of Money Orders is supplied by the Post Office.

THE CAPIT.AL_j.CCOUNT - In this section of the Balance of Payments are recorded all cha.,ges in Claims on the Capital Account of transactions between residents and non-residents.
Direct Investment in Guyana (Item 11) - These amounts include expenditures on fixed assets by for9ign-owned companies in Guyana as well as changes in in­ ventories and i...� the case of Mining Companies amounts expended on exploration and land clearing.

The total of these expenditures is, however, adjusted by Capital Consumption Allowances reported by expatriate firms.

Accordingly, the ► .. 5. figures appearing as direct investment in Guyana by expatriate firms are net of depreciation.
This count�J no assets �ntrie�.

\ does no direct investment abroad, consequently, there are Ali the figures of direct fuveskents are reported by the firms con­ cerned on questionnaire' s prcrvi'ded by the Stati�tical Bureau· • .Q.ther Private Long Term Capital (rt:enf 1,gl·.
:-:.�_0p.· the Credit Side (Liabilities) these amounts compri�e purchases by e�patria'te firll1s of securities issued in Guyana, claims arising out of Contractor financing of projects in the country adjusted by payments :in respect .of such .financing,.

·and contributions by the Slgar Co:mpanie$ to: certain ·Sugar Funds.'

An explanation should be given at this· st� relating to the treatment of Sugar Funds.· In· Guyana, ·the Sugar Companies are expecte·d fixea.
to contribute amounts based on the export of sugar to the Sugar Labour W81:fare Fund, a Re­ habilitation Fund_ and a Price �tabitization Fund.

The first Gne is not re� levant to _the Balance of Paymen,ts as the contributipns are mad� i:t,1 respec� of Welfare projects_ for persons em;ployed ' .

'.

by: the.Sugar·Industry and are therefore .

resident to resident transfers.

i:):1he .rema:y-:i;i.ng two,.

hov�ever, be relevant to the :j:3alanc,f,3 of Payment:i.ihe �ar.
Jnd.us�ry normally from the Rehabilitation Fund for the financing of some of its capital are considered ,to, .

funds X investment utilises expend� ture13 and fi;-o_m th� 1!i�·e Stf,iqilizatio .n.

Fund for supp0rt to the ind1,1s.try in times of low prices.

Conseq1?-ently, the contributi ons to these Funds have been treated in t)le Current Account as part of investment income attributabl.e overseas residents.

TI?,is _same �ount ip.

pri:1ciple has 1;Jeen br,oug:l;.t t_o back into the ' .

.
.

country as a cre0.it to Long �.1erm Capital Investment, as the· Funds are administered locally by the Government.

However, the ac-tt:al amou..Dts that have been carried to the Balance of Payments in any one year are the contributions less any amounts withdrawn by the companies during the year.

On th� Debit Side1thi� i·tem ( Assets) are i�cluded a-nounts are wh:foh mostly Portfolio Investments made abroad by certain enterprises.
The institution s whose po'rtfolio transactions are cove;ed are the local insurance companies and the New Building Society.

The Balance 'Sheet reports of the Insurance Comapnies are the source of the'figures in this item and a high amount of reliability is therefore achieved.

Other ••• 6.

Other Short Term Private Capital bilites are mainly changes (Item 13) - The Short Term .Assets and Lia­ in the Current Assets and Liabilities by foreign­ owned finns.
These figures are derived from reports submitted by the firms.

Central Government Capital Movement (Item 14) - On tha Credit Side of this item are recorded loans received.

by the Central Government from the United Kingdom and other foreign Governments and Elctemal J\gencies.

Repayments are entered on the Debit Side.

Also included in this item are certain capital transactions by and amounts accumulated with the Caribbean Currency Board on behalf of Guyana.
The details are derived from the Financial Accounts of the Accountant General and the figures are therefore considered to be reliably based.

Monetary �ctor (Items 15 to 20) - The Central Government Assets are the investments made abroad by Government and Quasi-Government Funds.

These Funds are the\Sugar Industry Special Funds, Government-owned Sinking Funds and certain Trust and Miscellaneous Fund"s, .

Also' included are the transactions with the Joint Consolidated Fund.
The Securities are valued at their trans­ actions value.

The Commercial Banks Foreign Assets and Liabilities relate to changes in balances due by banks abroad, mainly Head Offices, to local banks or balances due to banks abroad by local banks.

The Corrnnercial Banks make 'periodic con­ solidated statements of their assets and liabilities from which the balances are extracted.
The currency in circulation are the issues of notes in Guyana by the Caribbean Currency Board which for the purpose of these accounts is treated as non-resident.

Increases in currency in circulation therefore are interpreted as increases in Guyana's foreign assets.

The Post Office Savings Bank Assets are the Investments made abroad by , .

.
.

the Bank, The .Annual Financial Accounts of the Accountant General are, .the source of the figures for the Savings Bank and the Funds referred to earlier in this section.

The figures .are therefore regarded as very reliable.

T~e l ITEM c.coro ,..,.._ l. 1!1lJorts (co!of .)

2o Export.s (f .o.b.,) 3o Balance of Visib le Trade ~ 4 .. Freight and Insurance on International Shipments 5 .. Tr-:ill;::{Jortati on 6.

Travel 7o Investment Income 8~ G::ivernment (nce.,s.)
9o Other Services 100 NET BALANCE OF RECEIPTS ON ACCOUNT OF SER/ICES (4 to 9) 110 BJ\LlNCE ON GOODS AND SER/ICES (3 + 10) l2o Unilateral transf ers PB.Y'" ments (net.)

130 CURRENT ACCOU1'.
"T BALANCE (11 +12) CU R~'1\IT ACCOJWZ 1960 1961 1962 1963 1964 1965 G,Q $ 000 - Jl+7~370 ~ l26~675 .. 181,408 ~ Jl+7:¥869 + l28v22l+ + J1.6~51J4 + 164,020 + 172 9 863 + 169~369 + rnt:121 4.281 + 54,178 + 18~295 20174 + 3?,3L1S .. 118,685 - 151,074 .. - 19.,616 + + 2 ~81+8 + 2 ~ 809 + 2,587 + l,139 + 1, Jlil + 922 4,731 57047 l,107 + 657 61.~0 1~ 190 2,364 290:J2 1,509 1:1616 - 23~609 .. 23~2J.1.6 - 363993 - 28,476 + 289 "' 967 862 + 42 + 3 ~950 3~930 ... 29~776 - 27,282 279 3,100 i~ 276 + 21+0 + 3:372 2~9J2 2,61D + 1~563 ~ 28~82.3 ... 28,845 - 48n480 - 26.~649 + .. .3lb512 - 31~166 - 35,5£!.+ ... 37.>:;0J:/ 2,8.33 + 230012 - 17~269 - 3?fi298 + 3r7C7 + 7n01.l + 6~16J.
+ 3,345 -l· 5,574 + 9~352 - ~-:i c" J,~;,?]

+ fh~ + g§,~ ... J.1~2~ - ~il& Net F!lce ip ts (+) Net Payroentr.

{"') 8. ct.PIT.4L ACCOUNT Table 1 cont•d $ 000 G ..

ITEM l96o 1961 J.962 1963 19€1.+ 1965 JA.

15 .. ®· 17.

Net Long Term Pr!vyte Cnp 1 tal Int low 1.


Net Short Term Private Cnp 1 tal Int low Net Investment Loons Received by Central G0'1ernment Olrrency SUrplus Account with the O.frrency Board Y i.o .. TOTAL NET CAPITAL TRANSACTION {+Inflow - OJ.tflow} +32,363 + 10,381 853 + 0,797 + 8,255 + :14,390 539 - 2,454 + 734 + 3,310 + 1,659 + 7,4J.2 + 70267 + 2,235 399 + + 10,521 + 5s437 + 2,496 + 1,870 .U6 109 92 - 3,177 +42,010 + 17~508 + 6,898 + J4~859 + J4~16l + 14,742 1·9..
Unidentified Capital Transactions including error (+Inflow - outflow)+ 21392 + 4.052 .. 6,856 - l5G086 + 4~555 + 1~329 2.0o CAPITAL DEFICIT ( +} OR SJRPll.JS (c') + 321 1,922 9,036 - 26,l.30 <;' 7,021 + ll,875 21.

TOTAL OF CHANGES IN FOREIGN RESER/ES Ji (20 Q 21) (a} Government Foreign Assets&./.
(b) <llrrency in Circulation T ~ - k~ ... ~ - ~J.JQ - ~ +ll,875 - 3,850 - 2,603 - 6t308 - 6,384 - 1,517 - 5,761 + 3,154 + 4,823 - 3,456 5,294 741 l1+3 + .. 13~ 809 - 6,282 + 12,403 (c) Commercial Banks + 7,368 + 546 .. 10,100 (d) Post Off ice !livings Ban.~ + 259 + 270 + 2,549 €1.+3 + 37 + 2,079 TOTAL INVESTMENT AND CAPIT.tiL FINANCING (Iter.41 :1.8 +J.8+.20) + hlh~ + ~6Jfl - ~ - ~46.&3.£ + 1ln695 + f.lt 9ft.6 Cnpital Inflow and r eduction in Foreign Reserves (+); Cnp1tal OUtflow and increase in Foreign Resllrves C-).
1f '?J Includes f or ei gn direct investment in Guyana and ne t contribution to SUgar FUnds l96o & 1961 includes investme nts of the currency Board and in 1965, t he recovery of Government debentures issued aga inst Currency Board not es 0 2J Fi nancing t he Capital Daf!clt or absorbing t he Capital Su!

!Jluso lJ.!.

Includes Joint ConsoJ.1dated FUnd, Sinking Fllnds, SUgar Industry ~ecial Fl!nds and Trust and 1'11sce11aneous FUnds ~ 9.
TRENDS IN THE BALANCE OF PAYMENTS 1960 1965 In 1960 the value of imports exceeded the value of exports by just has been.for exports of of imports of Account was just about $2.2 Mn.

to $37 Mn.

in 1962 and $54 Mn.

in 1963, but fell to goods to exceed the value the tendency produced about $19 Mn.

Since 1961, however, and foreign domestically This surplus on the Merchandise merchandise.

in 1961.

It increased $18 Mn.

in 1964.


While exports was expanding imports had declined the country between 1962 and 1964.

Investment seriously involving Goods.

curtailed were increasing a corresponding activity decline in imports of Capital in was for instance due largeiy to political because domestic conditions production The trend changed, however, in 1965, when imports on the Merchan­ exports by approximately $4 Mn.

In that year exports by approximately climate and improved $8 Mn.
but imports economic expanded activity.

even faster under Firms which their stocks to decline to a very low level in 1962 to 1964 were to build up their inventories again·; also the purchase of consumer political dise Account exceeded had increased a changed had allowed beginning durable goods increased level of purchase sim-iificantly in 1965 after a somewhat depressed of these items during the previous three years.
It should be pointed out, however, that because of the dislocation Strike (in which the Civil Service was in­ a substantial by the 1963 General engendered volved) not recorded.

higher than the 118.6 Mn.

shown.

The balance of visible have been somewhat apparently recording of exports to some extent.
lower as the situation amount of goods which entered the country was probably In this event the value of imports may have been significantly trade may.therefore did not effect the When the balance of visible trade is being reviewed, it ought to be noted that in the years 1962 to 1964 when surpluses expenditure in the .domestic investment appeared.

capital level of imports of consumer of which tend to rise with increased activity This is a significant goods is very high in Guyana.
Another goods particularly relationship earnings economy as a propensity important to import factor is the rising con�u.mer durables, the imports by individuals.

investment when was at its lowest level.

Conversely were recorded, began to improve a deficit on the Merchandise Account It should, however, be noted that while the higher value of exports to higher prices for export commodities, in the volume of sCDo_o;:ports it was also partly notably Calcined and Rice.
In the case of Sugar, while the volume of exports with 1961, during the period 1962 to 1964, export prices the fall in the and this effectively counter-balanced for by increases Alumina compared was due largely accounted Bauxite, declined were rather favourable quantity of sugar was particularly ton, compared of sugar export,od..
In 1963 in particular, the world market price high; the average export value was $269.0� per with $186 .00* in 1960 and �lilSl.00* in 1961; however, prices fell *These are uncorrected sugar in Customs documents.

for undervaluation of 10. sharply in 1965 when the average export price reached the very low level of $166.

70 • per ton.

,The same phenomenon was observed :i,n the case of rice where the average export prices fell from $336.00'per ton in 1963 to $242.00 .in 1965.
The indexes of export prices (See Appen.

6) indicate that were rising since 1960, but declined very sharply average export ·prices in 1965 by approximately 15%.

Thus it was mainly the price factor that sustained the total value of exports at the higher level during the period 1962 to 1964 and this same :price factor was also largely responsible for the depressed total valu� of exports in 1965.

Th� quantity indexes .

.

of importsshow .

.

that in terms of volume .


imports rose ·by about 3% in 1961 compared with 1960, but fell in 1962 and 1963 when the v�lume reached its lowest level i.e.

about 15% below tb,e level reached in 1961.

In 1964, the 2�ansion.

was markeg representing an increase of 28% over the previous year.

In 1965 there was a further though.less spectacular rise·of about� in the volume of imports.

QUA.T'frITY INDEXES OF IMPORTS 1961 = 100 )362 19661/ 100.0 92.8 108.4 123.5 1./ Preliminary .
While export prices were rising sharply as was pointed·out .

the periods earlier.

between 1960 to 1964, it appeared· that import pric�s were fluctuating somewhat but tended to rise moderately until the end of 1964.

In 1965 .there was a significant rise in import prices.

Generally, * This is uncorrected in Customs documents.
of sugar for undervaluation therefore ••.• 11.· therefore the Terms of Trade i.e,.the purchasing power of our exports in terms of imports appeared to have moved in this country 's favour during the period 1960 to 1964.

In 1965 there was a definite movement in the Terms of Trade· Mainst Guyana, indicate any worsening of the position.

but preliminary figures for 1966 do not THE INVISIBLES - The most significant ite�s figure among the invisible.

is the Investment Income payment abroad.


Throughout the years this figure has been substa..�tial, representing a significant outflow of funds from Guyana in the form of profits to foreign shareholders.

This figure tended to increase with th� rising level of exports as the main commodities that enter the export trade are produced by foreign-owned enterprises.

The Government public debt has also been increasing rather sharply.
The increases relate to loans raised abroad for ·financing Government's first five year Development Programme.

Interest charged on the outstanding public external debt has therefore been rising rather significantly.

Guyana has no Tourist trade and no International Shipping, consequently large outflows occur through the external travel of citizens of Guyana and the imports of goods in foreign ships.

UNILATERAL TRANSFERS .

;..

As was pointed ·out in an· earlier Unilateral versa.
They also cover grants ·or aid made available Transfers .

are gifts from residents by fo_reign to non-residents, or vice paragraph, .

governments to the central goverr.JI1ent of Guyana.

Receipts on account of privat�·transfers have been mainly in the form of money orders �eceived from abroad while payments have been mainly i.� respect of pen­ sions.

The tendency has been for the country to record a net payment on this item.
With regard to transfers at the government�level, the main item on receipts are the grants by the C.D7 & W. Fund in the United Kingdom.

This amount has been in excess ·of $4 Mn.

between 1960 and 1962, but has tended to decline since then.

United States aid in the form of technical assistance •••• 12. assistance have also contributed significantly since 1962.

Payments are mainly in respect of government's contribution to �ds, and pensions to persons resident abroad.
This item has always provided the substantial surplus.

THE CURRENT ACCOUNT BALANCE - In 1960 and 1961 there were large deficit balances on the current account; in fact these net outflows of funds on the current account were $44-7 Mn.

in 1960 and $19.6 Mn.

in 1961.

In the period 1962 and 1963, the country recorded surplus balances on the current account - $9 Mn •.

in 1962 and.

$26 �lfn.

in 1963.

This improved position was due largely to substantia l surpluses recorded on the Marchandise .Account.
In 1964 and 1965 the current account balance changed trend and was in deficit again._ - $12 Mn.

in 1964 and $28 Mn.

in 1965. FINANCING THE CURRENT ACCOUNT - The major investment activity in the private sector is carried out mainly by expatriate enterprises.

Consequently, high investment in these enterprises imply large inflows of capital funds from abroad.
Thus in the years 1960 and 1961 the current account deficit balance was financed mainly from the direct investment firms of expatriate supplemented by substantial loans made by the United Kingdom Government to the Government of Guyana.

Changes in the external balance in the Com­ mercial Banks also helped to finance the current account deficit.

There waf::!

:there:rom,_particularly in· 1960, san.e reduction in foreign reserves.
In the years 1962 and 1963 investment activity by expatriate firms was relatively low and when the outflows arising out of the pro­ visions for depreciation o.f.

the assets of these enterprises were taken into account the direct investment figure was reduced substantially.

Government loans were, however, at a high level, but changes ,in short- term assets of companies represented outflows of funds.
During the period, however, the external reserves of the country increased, as the Balances held by the Commercial Banks with their Head Offices, showed important accunrulations $6.8 Mn.

in 1962 and $13.7 �In.

in 1963.

In 1964 Direct Investment (net) by expatriate companies increased ••.•• .. 13. increased �� to $9.5 Mn., and in 1965 this flow rose further to $le.2 Mn.

� .

. '

' In both.years there were net inflows and of knm•m short t�:tm capital.
of foreign securities by'cer�ain dec'iined T of loans to the Central Government' Rowever, it did appear that holdings Statutory Funds �d Financial Institutions in.1964, and agaih::i.n 1965 •.

Further because the current account defic'it in 1964 was.

:relativeiy small ($11.7 Mn.

),and as the Capital inflow on account of Direct Investment had also increased, ' the External Reserves .

in the form of Bank Balances increased by $6.3 Mn.

in that year.
in that year.

However, these balances, which were in fact rising s.ince 1962, declined rather substantially ($12,4 Mn.

)·1.n 1965, because of increased imports, and a current account deficit that was much more than double.the deficit of the .

.

previous year ( 1964) • Thus· the Current Account Deficit in both 1964 and 1965 have been finEµ1cetl mainly by inflows of �vestment capital:and loans to the Central in the foreign balances of th8.,: Commercia.,l $�s.

.
.

Government, and additionally in 1965, by a reduction UNIDENTIFIED 11 EXTERNAL TRANSACTIONS - Tn,e figu:res.

which appear as"net errors and omissions have been rather substantial throughout the years, particula::-ly in 1962 and 1963 when they represented net outflows which have not been identified.
Although there were exchange control restrictions on the external movement of certain funds between 1962 and 1964, there have nevertheless been unauthorised trari.sf exs of funds from the country which have not appeared in official statistics.

Besides, even under exchange control it was-possible under certain conditions, for instance to with­ on Emigration, draw funds from the country.

However, under existing conditions of statistical data these movements too did not form part of the official statistics.
To a large extent therefore ·., net unid_�ntifiedLmovem�m!� of p:r:ivate .

reflect . '

short term capital.

the "errors and omissions figures 11 BALANCE OF PAY1�ENTS -1966 - .An attempt has been made to provide pre­ liminary estimates of the key items in the Balance of Payments for 1966.

Merchandise ••.• 14.

Merchandise Exports were yalued at $.194.4 Mn� i1t 1966, and Imports '$202..0 Mn.

giving a deficit on the Merchandise Accq�t of $ 7 .6 �-' after.

8Qrrec�i9n ; fo,r any under-valuation of exports.


Investment Incomes including,Government Debt Interest .. Government received . '

.

, ' payments have Qeen projected t9 $31.9 Mn.

The to increase $8.9 Mn.. from for�ign sources, and gran�s totalling these together with payments in respect of services �ave ma�e �t necessaryr to projeot a Current Acqount Defici� Balance of $30.9 Mn.

ir 1966.
ir 1966.

On the financing side, Net Investmen t by expatriate a-net inflow of capital to the value of companies has been _estimated to provide $19.0 Mn.

and Government loans have provided a further sum of $t".o Mz!.

{nst of repayment).

·During Head Offices.have decreased 1966, the balances held by Conn:nercial by $6.7 Mn.
and the Central Bank experien6ea ·Banks with th�ir a decline in its foreign assets.of $5.4 })n.. As a result·therefore of the­ large increases in imports arising chiefly from large scale public and private capital expenditures, to the amount oi $12.1 Mn.

despite Guyana suffered reserves a reduction in its foreign -the large inf'lows of of'ficial grahts and loans, arid private capital •.

.A_PRELIMINARY STATEMENT FOR 1966 VISIBLES 1.

Merchandise Exports (f .nb.)

2.

M erchandise Imports (c.i.f.)

3.


13alance of Visibale Trade 4.

Non-Monetary Gold INVISIBLES Income 5.N et Investment 6.Other Invisibles (Transportation Traver etc.)

7.Private_ Transfers 8.Government Grants 9.Cu:ITent Account Balance +194.4 -202.0.

7.6 -.

0.7 28".6 3.4 + 0.5 t 8.9 -29.:.

'l CAPITAL •••••• Table 3 (Cont 1 d) J5.

CAPITAL AND FIN.Ai""fCING ACCOUNT 10.Direct Investment 11.
(Depreciation .Ulowances) 12.Government Loans received 13.G overnment Loans Repayments 14.Decrease in Commercial 1 Foreign Banks Balances 15.Decrease in foreign .Assets of Central Monetary Authority.

16.Other Capital Movement including erroIS and omissions.

Net receipts and Capital Inflow(+) Net payments and capital outflow(-) !.,Mn.

+36.0 -17.0 + 3,8 - 1.8 + 6.7 2.2 +·30.9 .APPENDIX l ---------- ITEM A • .QQQQS .AND SERVICES lo Merchandise 2.
Non-ltmetary Gold 16 GUYAN.A • BALANCE OF P .AYt1ENl'S 1960 - 12§.

'i $ 000 G .. 1962 1961 I ~60 I CREDIT I DEBIT I CREDIT I DEBIT !

I J.45,674 i 194,164 168,657 195,306 ,' 192,135 189,302 193,117 170,105 1194,113 211,382 205,719 I 2].0, 017 j 12s ,2ai.

I J.47 ,598 J.49,544 164, 020 226,277 172,863 118,510 169, 369 150,826 177,127 180,965 i DEBIT CREDIT J.47 ,001 CREDIT CREDIT CREDIT DEBIT DEBIT DEBIT ;-- 1964 1963 1965 369 271 175 398 248 443 !

.

- ...

I - - - - - 1 - -~ ~ I 3.


Freight & Insurance on jl International Sh1pments1 I 2,858 I 1,403 2,261 4.

Other Transp ortation 5~ Travel 6.

Investment Income 2,848 Direct Investment - - 2,so9 - 2,587 7,589 3,225 8,072 1 3,132 3, 767 1,522 3,534 1,435 - 411239 1 2,944.
1~139 2,755 1,141 922 2~098 2,738 3r378 3,305 4,495 1,075 2$691 2,269 50219 1,922 5,852 25,870 2,253 25,499 1,739 389732 l 2,002 30,li78 2,012 31,788 2,024 29,306 22,380 21,557 34,110 : - 24,706 25,357 23 , 824 Other 2,261 3,490 2,253 3,942 1,739 4,622 2,002 5$772 2,012 6,431 2, 024 5,482 7.

Government n.e.,s.

751 464 648 1,615 1,707 2,569 2,236 2,194 2,793 2,514 3,758 6,858 8.
Other Services 7,329 8,605 8, 656 8,416 17,515 J.4,J.43 11,047 13,959 J.4,791 17,409 16, 661 15,098 TOTAL 48,490 26,649 2,833 23,012 j 17~269 37,298 B. TMNSFER PAYMENTS 6,263 !

2,496!

9.
2,496!

9.

Private 10., Central Government 1,227 5,036 1,544 2~512 952i 1,m 939 9,789 I 2~778 1,839 TOTAL 3,767 I I 7,011 8, 656 1,BJ/-t 6,842 6,161 2,1f95 I 7,675 I 4:1330 I 9~200 I 3,626 I JJ-t,454 1 5,102 2,610 I 4,212 830 2,401 2,219 I llg 784 2~111 2, 161 2,511 1(,1392 2,159 5,158 611439 l,103 3,345 5t574 9,352 TOTAL (l through 9) TOTAL ( l through lO) 48,so11 44,7231 I 25,<J76 3,255 I 19,638 8,994 1 23,358 26, 357 16,915 11,695 38,900 I 21~946 I Cont'd• •••••• > .

j., I .

- 17 APPENDIX 1 (Cont•d.)


ITEM ' c. CAPITAL AND illNETARY GOLD I 42,331 Non-J::tmeta:ry Sectors llo Direct Investment In Guyana Abroad · CREDIT I \ 42,010 I I .30,413 I 30,413 I ..

I 12.

Other Long Term Private 1,950 Li ab 111 ties Assets 13.

Other Short Term Private ' Liabilities I ASsets I J4.
Central Government 2,701 - - - - 9,647 1960 1961 1962 I I 196.3 - DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT 2,l.38 11,271 7 , JJ+o 15,586 17,508 6,898 14,859 7,294 7,291+ - 1,503 2,082 .3:>042 3~042 9,610 ' 771 751 2,933 9,610 2,189 - - - - i - - - - - r !

2,162 i 539 - i - -1 I - I I 7,6661 I 2,792 1 7,999 - .

- - - 4,1+97 - - - - I 10,205 732 111,420 752 - l ... .. ... 539 .353 c 2~308 - - 2,454 2,454 734 980 - I 5,308 7,645 Loans, Peceived Other Liabilities Other Assets M:lneta:ry Sectors 15.
Central Government Assets J.16.

Central Government Liab 111 ties 17.

Commercial Bunks Assets w. Commercial Banl{S L1ab1l1t1es 19. currency in C1rcul.nt1on 20.

Post Office Savir.gs Bank Assets 21.

Net Errors and Omm1ssions 9,204 I I I I I 2,400 I - I - i I 321 1 - - I i 5,110 I I 165 !

I I I 2, 81d - I 63~ - .. i I ' 3,:~ 259l 278 2,25s I I - I 4,052 .. 275 2,392 " - l I I 271 1,922 Jl.+3 - .. .. 2,603 - - 8$9 .. .316 2, 634 911036 - ' .. .. - 2~189 - - - - I 6.,s:u 311289 - - - - 2,549 - - ..
I 6.056 6~308 I I i "§d;' .

.

$ ooo G. 1964 2965 CREDIT DEDIT CREDIT I DEI3IT - - - j · JJ+,161 9, 504 9,504 - - - - - 579 - .. 1,249 837 412 3,318 3~606 1 - I 288 26, 617 14,742 16,165 16,165 - - - 1,659 1,966 - .. 1,775 1,264 511 - 307 1,307 - 2lf6 2,208 - 109 26,lJO 5~29l~ - :1.3.,718 6,384 2,667 3,177 2,,5[38 1 4,003 I 1,507 I - 7,021 4,5371 - ..
I ll,875 3, 154 - 92 I - - - - - - - 12,431 - 27 - - 6,255 l,517 741 .. - 91 - - 28 5,761 643 37 15,086 4,555 - - 2, 079 1,329 - - ' ,c ' ~ I J' I ,, i 'I j: ii ' i: l I: 18 MERCHANDISE T~filil1~ APPENDIX 2 l. Exports f .o.b.

2.

Re•Exp orts f .o.b .• ' 125,051 .

·2,261 li.t6115.

't5 2,3:14 16111081 2,3G0 169~911 166,221 111099 2~245 Wf!J.

JS§J.. ~~ J.963 ~64 -.... .c.

-<.

1965 - 175,198 2$080 127.,.312 148$1869 l63s4C4 171,810 168,466 177,278 ~ustroonts for ,3 .. Gold 4.
So 60 Ship Stores and Bnr.kers cugarPreference Certificates Re-£xp or·ts ot goods telilJ oror11y iLlJ orted - 3C9 - l,220 61 "" .. 6J4 l!l.309 10 .. - 5.32 l,151 3 - 78 l,J46 - 15 - 261 .. l,l&l 4 - 151 TOTAL 128,224 JJ+9~544 1641020 172,GG.3 169,.369 177,127 7.

!LlJorts Coiefe !

!SJ,ustments fer l1t7r1599 J).J.7:;001 126~277 118~510 l50,826 180,965 e. Gold 9.

Sar;ples and articles ter:pornrily inported - l TOTAL 147,598 l471700l 126,277 118,510 150,826 180,965 ' A!ffil!.

!2U 3 CREDITS 19' Qj'j!ER.


~~ l 960 19~ 1962 1963 J,,2§1.i 1965 $ OOQ lo Non•Mer..9,ili:'l_.nd1se Insurance (a) Prera1mn collected abroad by Guyanese Companies (b} Claims paid in Guyana by branches of f oreign compani es 2.

!

:1!§!...£.ellaneous services of prlY.g.te CO!

:l'.fill i ~ .

( a ) Guyanese and forei gn-owned Ab) Br.anches of f oreign Insurance companies (c) Foreign Contractors Agency f ee·s n11d Commissions ·r er sonnl Income Communicati ons 3.

4. s.
4. s.

1,2.?/} 1,448 - 797 r.~ 1~389 l, G.~2 1,701 559 - 3,843 3s360 1,415 6,366 4,583 526 1,740 2, seo 1DJ63 3, 713 2, 632 220 1,080 2,,033 1,451 h, 9lr3 3,701., 1, 274 401.J, 2,929 1,509 4,567 .

2,57/4 ' 864 7 $"Jh.-7 7 5 5 6 r 0 TOTAL 7,329 8, 656 17,515 11, 047 14, 791 16, 661 DEBI±:§ 6.
~-Merchand ise Insurance (a) Claims paid abroad by Guyanese Comp ani es (b) Re-insurance pai d abroad by Guyanese companies (c} Premium collected in Guyana by branches of f oreign compnni es 391 ]50 5Li2 08 83l~ 158 858 3 1, 198 l ., 928 77 4p077 3,169 5,155 6, 875 7,304 7~l31 ' ~ .......

.,.., "\ r --·--.

-~-~--·-~ --- - - ------- --- ---- _, "E 1 - ~ IPP¥ffiIX .J (Con~•d.

12§.Q ~ 1962 1963 1961-t ~ 20 7., ~ellaneous services of private cOJTIRanijlJl.
(a) Guyanese and foreign-owned 1, 338 2~ 942 (b) Foreign Contractors 8.

Fees and Colilill1ss1ons 9., Guyana Gover nment payments of f ees abroad 10 ..

Personal Income 11.

Film Rentals (net) 12e !l'ools, Lotteries & Prizes 13.

Co:arauni cat 1 ons 1,004 68 - 54 756 267 439 95 482 305 304 5,552 1,160 161 73 - 506 220 324 4,222 61020 4, 832 720 279 71 - 360 245 326 300 504 86 335 lt85 326 1~104 106 400 520 TOTAL 8,605 -8A16 ll-t$143 13~959 17,409 15, 090 APJ'El.JP~.X._?!
CREQJ,,1'£ l .. Grunts 21 £fil!TP!-1L GOVERNMENT PAYMENTS ;t2§.Q 1_291 ~62_ liG].

19Glt_ I2§2 $ 000 (a) c.o .• & w.F.

-{u.r .. J (b) Special Grant {U.K.) (c) -Un1ted States (A.I.D.)

(d) United Nations (Special fund) 2.

Income Tax Paymen~s by Foreign Insurance Co.fil:lanies 4,792 - - 152 92 5,570 - 1,3.36 2.36 l.35 4,237 - 29569 3 33 2,737 - 2,194 2 225 3,053 632 2;6ol 51 102 1,19.3 10,491 lJO TOTll.L 5.0J6 7~277 6,842 5$158 6,439 lli7G4 ~ 3.

Pensions and Gratuities 4.


Government _Contributions TOTAL 373 579 952 332 607 939 205 098 215 1$9Li4 22.3 996 1,103 2,159 1,219 246 5&+ 830 ' c ...... "' c - 22 filRECT 4,SSET INVESTW.NT Mf.~u.

!.X..-5 122.Q LI.ABILITIES ~ 19f>l 12£2.

~ ~ l.~ Foreign Direct Investment in Guynna ::4,925 19,483 8,552 15,298 2.3,.346 J:eprec!ntion Stoel~ Changes .. 7,309 ... 12,041 .. 14,147 .,..

l.3:280 .., Jl+,554 2,797 21).68 20553 5,276 712 25,617 ·.:i,G.
481 79029 T<Yl'.AL 30,l+l.3 9~610 ... 3~642 7p294 9,5C4 16~ 165 ~ 23 t'RICE INDICES OF H1PORl'S AND EXPORTS AND TER1S OF TRADE 1960 - 1966 -----------·---------,- - - - - - - - - - - - - - - - - - - - -+ - - - - - - - - - - - - - Buse Yenr 1961 = 100 Year I PRICE INDICES I I L-------------- -1----------------- - - I I .

Il1PORTS EXPORTS 1 1 -------------'-------- ------1--- ---------------------------- , _________ .

__________ :__.
__________ :__.

1960 1962 1963 1964 1965 1966 * I I 91.6 100.0 102.4 122.7 117.9 101.9 103"3 ·~ Prav1s1ol'13.1 100.6 100.0 103.7 103.6 102.6 100.1 109 .. 4 Note: Terms of Trade: E:i..'Port price indices divided by Import pric.e indices.

TER1S OF TRADE 91.0 100.0 9c.7 113.0 ll4e9 £4·.3 94.4 I u-y0 24 PRICE AND VOLUl'!E INDICES OF l"IAJOR EX.PORTS, 1960 - 1965 Af!, F'NDIX 1.
-- - - - PRINCIP!IL EXPO FITS J_ 1960 I 1%1 I 1962 - ------ , - - , - Duse .Year 1961 = 100 1963 1964 1965 SUGAR RICE !Ul1 11 AilllINA BAUXiTE, CALCit-i'ED BAUXITE, ~lHER MANG/\NESE G REENHEA RT, UNDRESSED vU1lLABA POLES SUGAR RICE Fill!

Alill1INA BAUXITE, CALCINED BAUXITE, OTHER MANG1u'lESE G REE1'HEARI', UNDRESSED WALLABA POLES 10206 97.2 98.7 97.9 87.3 98.1 llO.o 92.5 98,6 70P0 100.l 82.8 144.7 41.0 15~-oO 98,.9 INDEX , - -- - - -1 - - - -- T - ----- ------T .
---- ------- PRICE 100.0 loo.o 100.0 loo.o 100.0 loo.o 100.0 100 .0 100.

0 104.6 148.3 102.7 109.3 10,5.2 100.l 100.9 101.4 99. s 99 .
~ 111.8 102.4 99o7 110.0 104.4 102.9 110.1 89.4 QUAN'M1 INDEX 100.0 100.0 100.0 100.0 100,0 100 .0 100.0 100.0 100.0 99,.7 88.o 96.0 87c2 79.4 90.7 178.6 184.8 98.G 118.6 122.8 90.3 100 .. 0 96.7 54.9 102.4 65.0 80.8 I I I 126.3 112.3 109.3 109.l I I 111.9 I 117.6 103.6 110.1 87.6 75.4 85.9 100.0 242.6 126.4 43~2 72.6 60.6 88.,9 77.2 98.2 127.9 110.3 116.G 110.0 103.9 103.2 79.6 I I I I I i I I I !
99.,5 103.7 103 .• 8 22s .5 132.J 71.3 84.1 109.3 100.2 lf (-) No output in these yearso I • 25 PRICE, VOlDli E AND VALUE INDICES OF I MPOt"ITS 196o - 1965 Ind ices of 1 Pr i ce (Las peyres ) (2 ) 100.6 ioo.

o 103 .7 108 .. 6 Volume ( Pno.sche) (3) 100.0 74.7 99 .

0 107.7 Jllse Year 1961 = 100 Indices Of (4) 100.

4 100 .

0 80.1 APPENDIX 8,.

Year (l) 1960 1961 1962 1963 19 64 1/ 1965 ·~~~~~~~~-1--·~~- -~~~--'-~----'~~~~~~~~~~~---'~~~~~~~~~~~- I l l Pr elin i nary .
The indices of Volwne i n col umn (3 ) a.re bused on t he tPauscJ1e 1 ( current year we 1eh t ed ) f omula .

The i ndi ces of Prices in col wnn (2 ) are b:ised on t he ' Lnspeyres ' f on nu J.c. .

Ti10s e in col ur.m (!+ ) are ordinary l:ndl-ces of Tot& Value . '

i • I