10 Things You Should Know About Guyana’s Economy At 50

Pomp and ceremony: Flag raisings and fireworks marked the celebration of Guyana’s 50th independence anniversary on May 26, 2016.

By NAN Business Editor

News Americas, WASHINGTON, D.C., Fri, May 27, 2016: The CARICOM South American nation of Guyana on Thursday, May 26th, marked its golden jubilee or 50 years of independence from Britain. Here are 10 things you should know about the country’s economy to date according to the 2016 Index of Economic Freedom:

1: Guyana’s GDP is USD 5.5 billion but GDP per capita is USD6,895 with an inflation rate of one percent and an unemployment rate of 11.1 percent.

2: It economic status is mostly “unfree” according to the Heritage Foundation’s 2016 Index of Economic Freedom.

3: It has a Global Ranking of 127 on the latest Doing Business scale but 22nd in the South and Central America/Caribbean Region.

4: Its 2016 Economic Freedom Score was put at 55.4 out of 100.

5: The top personal income tax rate is 33.3 percent, and the top corporate tax rate is 40 percent. Other taxes include a property tax and a value-added tax.

6: The overall pace of regulatory reform continues to lag behind that of other countries according to the HF report with licensing still consuming about 100 days.

7: Foreign investment in the mining sector is restricted but otherwise foreign and domestic investors are treated equally under the law. However, banking remains plagued by inefficiency and a poor financial regulatory framework according to the HF analysis.

8: Guyana’s notable successes are its Monetary Freedom and Trade Freedom according to HF.

9: The concerns surround: Rule of Law, Investment Freedom, and Financial Freedom.

10: According to the HF 2016 Index of Economic Freedom, “Guyana’s policy failures and structural inadequacies continue to hinder broad-based economic growth.” The report added that “efforts to improve the management of public finance have had little impact, and the inefficient public sector remains a serious drag on private-sector development.”