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Guyana’s GDP Boosted by Remittances and Financial Deepening

Despite challenges in the global economy, Guyana has experienced a steady growth in its Gross Domestic Product (GDP) in recent years. One key factor contributing to this growth is the increasing remittance inflows from abroad.

The Role of Remittances

According to the Bank of Guyana, the country’s central banking authority, remittances have played a significant role in stabilizing the economy and promoting financial deepening. Remittances are defined as money sent by individuals living or working abroad back to their families in Guyana.

Financial Inclusion through Remittances

In an effort to promote financial inclusion, banks in Guyana require recipients of remittances to open a savings account before disbursement. This approach has helped to increase the country’s savings rate and promote financial deepening.

Evolution of the Banking Sector

The banking sector in Guyana has seen significant changes in recent years. In 2019, Republic Bank acquired Scotiabank’s operations in the country, increasing its share of Guyana’s assets and deposits to 51%. Meanwhile, Bank of Baroda reversed its decision to sell off its Guyana operations after the discovery of offshore oil reserves.

Strengthening Financial Regulations

The country’s financial regulatory framework has also been strengthened. The National Payment System project, designed with the World Bank, aims to modernize interbank communications and promote electronic payment services.

Future Growth Prospects

Guyana’s economic growth is expected to continue in the coming years, driven by remittances, financial deepening, and investments in key sectors such as agriculture and oil production.

Licensed Commercial Banks

  • Bank of Baroda (Guyana) Inc.
  • Republic Bank (Guyana) Limited
  • Bank of Nova Scotia
  • Guyana Bank for Trade & Industry Limited
  • Citizens Bank Guyana Inc.
  • Demerara Bank Limited

Licensed Non-Bank Financial Institutions

  • Hand-in-Hand Trust Corporation Inc
  • The New Building Society
  • Trust Company (Guyana) Ltd
  • Secure International Finance Company Inc
  • Beharry Stockbrokers Ltd
  • Guyana Americas Merchant Bank Inc