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The East Caribbean Business Forecast Report for the 2010 third quarter has placed Guyana as one of the few CARICOM countries to be in a favourable economic position for the third quarter of this year.According to the report, while all regional economies suffered to varying degrees during the downturn, clear signs are now being illustrated of which Caribbean countries are best-poised to outperform going forward.“In some cases, previously sound economies such as that of Trinidad and Tobago are now facing fundamental risks to their growth stories, while others, such as the Dominican Republic and Guyana, look set to capitalise from their geo-strategic strengths over the medium to long term.”It was pointed out, however,Angel Di Maria Jersey, that despite such diverging economic stories, there are still some major socio-economic concerns that threaten the region as a whole.It was pointed out however that a severe drought in Guyana is threatening the optimistic 3.5 per cent real GDP (Gross Domestic Product) forecast for 2010.The report said that the key sugarcane and rice sectors appear to be the worst hit, but inflationary pressures from the supply-side shock may also start weighing on domestic economic activity over the coming months.“That said, our longer-term outlook for the country is boosted by improvements to its political risk profile under the administration of President Bharrat Jagdeo…Although significant structural issues continue to hurt the country’s political and economic outlook, strong support for the government’s economic reforms means that Guyana is well placed to capitalise on increasingly favourable external conditions, in our view.”
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