page_title: Guyana
section_title: Economy
hierarchical_section_title: Guyana / Economy
caption_attribution_description: Tractor in rice field, Guyana Tractor_in_field_of_rice_by_Khirsah1.jpg
context_page_description: Guyana, officially the Co‑operative Republic of Guyana, is a country on the northern mainland of South America. It is considered part of the Caribbean region because of its strong cultural, historical, and political ties with other Anglo-Caribbean countries and the Caribbean Community. Guyana is bordered by the Atlantic Ocean to the north, Brazil to the south and southwest, Venezuela to the west, and Suriname to the east. With 215,000 square kilometres, Guyana is the third-smallest sovereign state on mainland South America after Uruguay and Suriname.
  The region known as "the Guianas" consists of the large shield landmass north of the Amazon River and east of the Orinoco River known as the "land of many waters". Originally inhabited by many indigenous groups, Guyana was settled by the Dutch before coming under British control in the late 18th century. It was governed as British Guiana, with a mostly plantation-style economy until the 1950s. It gained independence in 1966, and officially became a republic within the Commonwealth of Nations in 1970.
context_section_description: The main economic activities in Guyana are agriculture (production of rice and Demerara sugar), bauxite and gold mining, timber, shrimp fishing and minerals. The sugar industry, which accounts for 28% of all export earnings, is largely run by the company GuySuCo, which employs more people than any other industry. Many industries have a large foreign investment. For example, the American company Reynolds Metals and the British-Australian Rio Tinto's Rio Tinto Alcan subsidiary are heavily invested in Guyana's mineral industry; the Korean/Malaysian Barama Company has a large stake in the logging industry. Since 2015, foreign companies have made several significant deep water oil discoveries.
  Chronic problems include a shortage of skilled labour, deficient infrastructure, and until recently, sizable external debt. Low prices for key mining and agricultural commodities, combined with troubles in the bauxite and sugar industries, had threatened the government's tenuous fiscal position and dimmed prospects for the future. However, the Guyanese economy has rebounded slightly and exhibited moderate economic growth since 1999, thanks to an expansion in the agricultural and mining sectors, a more favourable atmosphere for business initiatives, a more realistic exchange rate, fairly low inflation, and the continued support of international organisations. In 2008, the economy witnessed a 3% increase in growth amid the global economic crisis. It grew 5.4% in 2011 and 3.7% in 2012. Economic growth is expected to increase in 2020 following the completion of the first off-shore oil project to 53% by IMF projections the highest rate every forecasted.
  The production of balatá (natural latex) was once big business in Guyana. Most of the balata bleeding in Guyana took place in the foothills of the Kanuku Mountains in the Rupununi. Early exploitation also took place in the North West District, but most of the trees in the area were destroyed by illicit bleeding methods that involved cutting down the trees rather than making incisions in them. Uses of balatá included the making of cricket balls, the temporary filling of troublesome tooth cavities, and the crafting of figurines and other decorative items (particularly by the Macushi people of the Kanuku mountains).
  Major private sector organisations include the Private Sector Commission (PSC) and the Georgetown Chamber of Commerce & Industry (GCCI);
  The government initiated a major overhaul of the tax code in early 2007. A Value Added Tax (VAT) replaced six different taxes. Prior to the implementation of the VAT, it had been relatively easy to evade sales tax, and many businesses were in violation of tax code. Many businesses opposed VAT introduction because of the extra paperwork required; however, the Government has remained firm on the VAT. By replacing several taxes with one flat tax rate, it will also be easier for government auditors to spot embezzlement. This was prevalent under the former PPP/C government who authorised the VAT to be equal to 50% of the value of the good.
  President Bharrat Jagdeo had made debt relief a priority. He convinced the International Monetary Fund (IMF), the World Bank and the Inter-American Development Bank (IDB) to write off US$800 million of debt, and millions more owed to industrial nations. Jagdeo was lauded by IDB President Moreno for his strong leadership and negotiating skills.
caption: A tractor in a rice field on Guyana's coastal plain
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