Thirteen (13) or
twenty-nine percent (29%) of the Survey group felt that conditions would
be more favourable for privately owned businesses, six or thirteen percent
(13%) expected that conditions would be less favourable whilst twenty-five
(25) or fifty-six percent (56%) anticipated that they would be neither
less nor more favourable in 2001.
Ram & McRae’s
Businesses act on
expectations which overall are not positive. They are not impressed with
official pronouncements and promises. President Jagdeo’s efforts to work
with the private sector is only one of the factors which can build
From a list of twenty-one
items, respondents were asked to rate what national or international
events, if any, made them more or less optimistic about the economy
The respondents expressed
greater optimism than pessimism about the privatisation of the GEC
(27/3/13)1, the presidential change (20/6/16), constitutional
change (20/8/14), government’s support for business and investment
(18/8/16), and the impact of technology (18/11/12).
The areas which cause a
great deal of pessimism are crime/drugs (0/35/6), the value of the Guyana
dollar (1/33/10), the public sector strike (1/32/9), corruption (0/31/11)
and smuggling (0/30/12).
More optimistic/ less optimistic/ no change
Ram & McRae’s
On the negative issues,
there generally was greater certainty among respondents and their
pessimism was almost overwhelming. With the exception of the privatisation
of the GEC, there was no issue on which there was overwhelming optimism.
Interestingly, of the five issues on which there was substantial
pessimism, three were of a law and order nature. Although optimists/
pessimists about the Presidential change was three to one, almost as many
- sixteen (16) - saw no change as those who expected positive changes
From a list of eighteen
measures, companies were asked to rank five on which they wanted to see
the Government take action.
On a weighted basis, steps
to lower direct taxes was ranked by twenty-nine (29) respondents or
sixty-four percent (64%) as the measure that they most wanted Government
to take. Twenty-four (24) companies or fifty-three percent (53%) of the
respondents would like steps to reduce exchange rates and twenty-two (22)
respondents or forty-eight percent (48%) would like interest rates cut.
Forty percent (40%) of the respondents call for the expansion of tax
holidays as an investment incentive, a long-term plan to assist
manufacturing and controlling inflation.
Between 33-37% of the
surveyed group would like expanded export incentives, more expenditure on
capital projects/public works, lower indirect taxes and the provision of
investment incentives by improved duty free incentives.