REVIEW OF THE ECONOMY 2013
15
SUSTAINING GROWTH, SECURING PROSPERITY
percent in 2011 to 4.6 percent in 2012 due to
the confluence of disruptions in the global
commodity market, mainly in the East, and
the distress inflicted by inconsistent climatic
conditions.
The external current account deficit tapered
marginally to 13.2 percent of GDP in 2012, from
13.4 percent in 2011. The main contributors
to this outturn were higher inflows to the
non-financial public sector and foreign direct
investment which spurred a capital account
surplus. Consequently, the Bank of Guyana’s
gross foreign reserves increased to US$862.2
million or 4.0 months of import cover.
Guyana’s stock of external debt grew by 12.7
percent or 48 percent of GDP as disbursements
were received under the PetroCaribe Initiative
and the Inter-American Development Bank
(IDB).
ECCU
3
Flat growth was recorded for the ECCU in 2012,
a marginal increase over the contraction of 0.5
percent in 2011.
The promising signs of recovery in 2011 were
dampened owing to the impact of Hurricane
Sandy on the eastern United States, the region’s
principal tourism source market as well as
the jaded outlook on the global economy.
Construction along with the wholesale and
retail trade and financial services declined while
conversely, manufacturing, tourism, agriculture
and forestry experienced renewed growth
and tempered the decline among the ECCU
countries.
Inflation moderated in 2012, decreasing by 1.1
percent from 4.1 percent in 2011. Inflation rates,
due mainly to increases in food prices, varied
from 0.3 percent in St. Kitts and Nevis to 6.2
percent in St. Lucia.
3
Antigua and Barbuda; Dominica; Grenada; St Kitts and
Nevis; St. Lucia and St Vincent and the Grenadines.
The external current account deficit recovered
slightly, measuring 17.8 percent in 2012 from
18.0 percent in 2011. Antigua and Barbuda and
Dominica posted deteriorations in their current
accounts from 10.8 to 12.8, and 12.8 to 13.5,
respectively. Conversely, Grenada, St. Kitts
and Nevis, St. Lucia and St. Vincent and the
Grenadines posted slight improvements in their
current accounts.
High debt levels began to stabilise occasioning
a lessened public sector gross debt of 80.1
percent from 87.6 percent in 2011. St. Kitts
and Nevis entered into an agreement in 2012
with external creditors to reduce the face value
of debt by approximately 6 percent of GDP.
Also, on March 8, 2013 Grenada announced a
comprehensive and collaborative restructuring
of its public debt, a quantum of EC$2.33 billion
(US$862 million), or 108 percent of GDP.
The 2012/2013 financial year was deemed
the most active in the ten-year history of
the Regional Government Securities Market
(RGSM). Fifty-four (54) securities were
auctioned, indicative of an increase of 15 percent
compared with the previous year. This reflected
the emergent importance of the RGSM on the
financial landscape of the ECCU as participating
governments relied on the regional market to
secure funding against a backdrop of skewed
and uncertain global growth.
ECONOMIC PERFORMANCE OF CARICOM STATES
