分类： business

Guyana’s economic landscape has undergone a seismic transformation since its inaugural oil production in 2019, achieving a world-leading 43.6% real GDP expansion in 2024. While petroleum exports now dominate, constituting 88% of total domestic exports, traditional sectors including gold, rice, and bauxite continue to contribute significantly to non-oil export revenues.

This unprecedented growth positions the South American nation among the globe’s most rapidly expanding economies. However, this petroleum-driven prosperity introduces complex challenges, notably the looming threat of ‘Dutch disease’—an economic phenomenon where resource wealth undermines competitiveness in non-extractive sectors. As a Small Island Developing State (SIDS), Guyana additionally confronts inherent vulnerabilities including commodity price volatility, constrained market scale, and rent-seeking behaviors.

A pivotal 2023 World Trade Organization and World Bank collaborative study highlights services as accounting for half of global employment and two-thirds of worldwide GDP, surpassing combined agricultural and industrial outputs. In Guyana, both merchandise and services trade maintained positive correlation with GDP from 2005 to 2022. Notably, engineering and logistics services, predominantly oil-industry adjacent, expanded nearly fourteen-fold between 2005 and 2021.

Paradoxically, Guyana sustains a substantial services trade deficit, exceeding US$4.4 billion in 2023, reflecting heavy dependence on imported high-value services for petroleum operations. Foreign direct investment patterns exacerbate this imbalance, with capital-intensive oil projects potentially crowding out domestic investment and creating limited local value addition.

Economic diversification through services sector development emerges as the strategic imperative. High-productivity domains such as information and communication technology (ICT), professional services, and scientific technical services remain underdeveloped despite governmental initiatives including tuition-free education from nursery through university levels.

Micro, Small and Medium Enterprises (MSMEs) represent crucial agents for transformative growth, capable of driving innovation in tourism, digital services, and green finance. Policy recommendations include establishing specialized export development funds, providing low-interest financing, and creating incentives for high-value-added foreign direct investment that strengthens domestic enterprise capabilities.

Institutional integrity enhancements through digital transparency portals and anti-corruption reforms are essential for equitable resource wealth distribution. Regionally, Guyana’s participation in multiple trade agreements—including accords with the European Union, Canada, Brazil, China, and Venezuela—provides frameworks for services trade expansion.

The impending implementation of CARICOM’s free movement protocol offers professional mobility opportunities, though Guyana has requested a five-to-seven year adaptation period before full implementation. Tourism innovation presents particular promise, with proposals including transforming the decommissioned Demerara Harbour Bridge into a heritage attraction powered by renewable energy, simultaneously preserving history and advancing eco-tourism.

Guyana stands at a critical economic juncture, where strategic investments in human capital, institutional governance, and entrepreneurial development could transform temporary resource wealth into sustainable, diversified prosperity for future generations.

Artisans at Barbados’ Pelican Village craft section experienced one of their most disappointing Independence seasons on record, with dramatically reduced foot traffic and minimal sales. Despite their prime location adjacent to the Port of Bridgetown, most craft vendors reported strikingly poor business performance during what is traditionally a peak sales period.

In exclusive interviews with Barbados TODAY, multiple business owners revealed the severity of the situation. Keisha Thompson, proprietor and clothing designer at Jenanya’s, explained that the challenges predated the Independence celebrations. While cruise ships are scheduled to resume regular port calls starting October, Thompson highlighted a critical problem: “Our current location differs significantly from our previous placement near the food court section where visibility was substantially higher.”

Thompson gestured toward the steady stream of cruise visitors across the street who remained unaware of the craft section’s existence. “There are absolutely no directional indicators informing tourists that artisans operate here. The lack of signage has created an incredibly frustrating situation where potential customers pass by completely unaware of our offerings.”

The relocation has forced tenants to develop creative strategies to attract customers while simultaneously managing operational expenses like rent and utilities. Although December marks the official commencement of the full cruise season, expectations remain tempered based on recent experience.

At Nafai Creations, jewelry artisan Sandra Padmore offered an even bleaker assessment, describing the Independence season as “exceptionally quiet” with no noticeable crowd increase. “The craft shops remained virtually deserted throughout the period. Compared to previous years, this season was incomparably slow,” Padmore noted.

Typically fast-selling Independence-themed items like flags and pins remained entirely unsold this year. “All my inventory remains untouched. I might as well have kept my establishment closed throughout the entire season,” Padmore stated.

Despite the discouraging results, artisans maintain hope that the approaching Christmas season will bring the customer volume that eluded them during Independence celebrations. With cruise arrivals expected to intensify from mid-December, Padmore expressed the collective sentiment: “I’m genuinely praying for a substantial improvement in business conditions—a significant recovery.”

An unanticipated one-hour work stoppage by ground handling staff at Grantley Adams International Airport on November 27 created operational disruptions during Barbados’ busiest travel day of the year. The industrial action, which occurred on what is locally known as “Fat Thursday,” saw approximately 8,000 passengers passing through the airport facilities.

GCG Ground Services, a member company of Goddard Enterprises Limited (GEL), expressed surprise at the work interruption, stating it occurred amid what they characterized as productive ongoing negotiations with the Barbados Workers’ Union. The company emphasized its commitment to both customer service excellence and employee welfare in an official statement released ahead of scheduled talks to finalize a Collective Labour Agreement.

According to GCG management, negotiations for the pay package had not broken down and were progressing toward a mutually acceptable agreement. The company highlighted its dedication to treating employees well at all organizational levels while maintaining high service standards for airport visitors.

Contrary to the company’s perspective, Barbados Workers’ Union Deputy General Secretary Dwaine Paul identified the work stoppage as a response to what union members perceived as a breakdown in negotiation responses. This disagreement prompted the morning shift to voluntarily withdraw their labor temporarily.

The timing proved particularly significant as the airport entered its peak seasonal period, with GCG appealing for team support to ensure efficient visitor experiences during Barbados’ critical tourism season. The company stressed the importance of their role in creating positive first impressions for travelers arriving on the island.

Financial leaders across the Caribbean are issuing a compelling call to action for small and medium-sized enterprises (SMEs) to embrace equity financing as a vital alternative to traditional debt. This movement, highlighted at the recent Innovation Growth Market (IGM) 200 workshop in Barbados, argues that over-reliance on borrowing is a significant constraint on the region’s economic potential.

The two-day event, a collaborative effort by the Ministry of Energy and Business, the Barbados Stock Exchange, and the Small Business Association, was designed to forge new pathways for business expansion, investment, and community development. Unlike debt financing, which requires repayment with interest, equity financing involves raising capital by selling a stake in the business, offering a more flexible growth model.

Daniel Best, President of the Caribbean Development Bank (CDB), delivered a powerful keynote, positioning SMEs as the indispensable backbone of the Caribbean economy. Accounting for over 70% of all businesses and a substantial portion of employment, these enterprises are the region’s primary innovators and employers. However, Best highlighted a critical paradox: despite their importance, many SMEs are chronically undercapitalized, burdened by debt, and stuck in a ‘financing gap’—too large for microfinance yet too small or informal for conventional bank loans.

‘Debt alone will not finance the Caribbean’s development,’ Best asserted. ‘We need patient, risk-tolerant capital that allows SMEs to grow, modernize, digitalize, and scale.’ He elaborated that equity is more than just money; it represents a strategic partnership. This infusion of capital provides entrepreneurs the crucial breathing room to invest in research and development, adopt new technologies, and explore new markets without the immediate pressure of loan repayments. Furthermore, equity investors often bring invaluable expertise in governance, operational management, and market access.

In a region highly vulnerable to climate shocks, such as hurricanes, and global economic volatility, Best emphasized that equity also serves as a critical tool for building resilience by strengthening corporate balance sheets. To unlock this potential, he outlined a comprehensive regional agenda including modernized regulatory frameworks, tax incentives for angel and venture capital investments, the creation of regional equity funds, and the use of blended finance instruments where public development banks like the CDB help ‘derisk’ projects to attract private capital.

Best also pointed to innovative models, such as the contingent recoverable grants pioneered for the Nevis geothermal project, where grant funding converts to equity upon project success. The agenda also includes formalizing SMEs to meet investor standards, enhancing corporate governance, and building digital platforms to connect investors with promising businesses across national borders, including leveraging diaspora investment.

Concluding with a rallying cry, Best stated, ‘If we are serious about building resilient, inclusive, future-ready economies, then we must be equally serious about mobilizing equity at scale… When we invest in our SMEs, we invest in our people, our economies, and our collective future.’

A prominent financial consultant has endorsed proposals for establishing a consolidated Caribbean stock market, asserting that the current fragmentation of national exchanges significantly impedes regional economic expansion and cross-border business scalability. Maria Daniel, Managing Director of EY Parthenon Caribbean, emphasized that a unified securities exchange would simultaneously empower companies to broaden their operational footprint throughout the region while offering investors substantially diversified portfolio opportunities.

Speaking at a two-day Innovation Growth Market workshop in Barbados, Daniel articulated the compelling economic rationale for integration: “We must acknowledge our individual limitations—small populations and confined territories. True scalability in the Caribbean necessitates unification: harmonized regulations, a single stock exchange, and ultimately a common currency.”

The consultant elaborated that a regional exchange would attract capital from both within the Caribbean and international markets, noting that technological advancements now render implementation more feasible than ever. Digital trading platforms and streamlined online reporting mechanisms, she explained, effectively eliminate historical logistical barriers that previously hindered such initiatives.

Daniel particularly highlighted the transformative potential for small and medium enterprises (SMEs), stating that a unified market would “distribute risk across larger populations while amplifying corporate narratives to broader investor audiences.” She cited Jamaica’s Junior Stock Exchange as a proven success model, where prohibitively high debt costs forced companies toward equity financing, ultimately stimulating economic growth.

Beyond regional benefits, Daniel emphasized that standardized regulations and a single exchange would significantly boost foreign investor confidence by eliminating the complexity of navigating multiple regulatory frameworks. She concluded with an urgent call to action: “We possess the necessary tools, technology, and expertise. What remains essential is political will and intergovernmental collaboration to transform this vision into reality. A Caribbean stock exchange transcends mere concept—it represents an imperative stride toward regional economic development and integration.”