The main economic activities in Guyana are agriculture (production of rice and Demerara sugar), bauxite mining, gold mining, timber, shrimp fishing and minerals. Chronic problems include a shortage of skilled labour and a deficient infrastructure.

Until recently, the government was juggling a sizable external debt against the urgent need for expanded public investment. Low prices for key mining and agricultural commodities combined with troubles in the bauxite and sugar industries had threatened the government’s tenuous fiscal position and dimmed prospects for the future.

However, the Guyanese economy has rebounded slightly and exhibited moderate economic growth since 1999, thanks to an expansion in the agricultural and mining sectors, a more favorable atmosphere for business initiatives, a more realistic exchange rate, fairly low inflation, and the continued support of international organizations.

The sugar industry, which accounts for 28% of all export earnings, is largely run by the company Guysuco, which employs more people than any other industry. Many industries have a large foreign investment.

The cost of living in Guyana is high. This is because most of the items used in daily life are imported with high transportation costs involved. Monopoly in some business sectors also causes higher profit booking and further raising of prices. A personal income tax, which is 33.33% (one third) of total taxable income makes the cost of living higher.

The government initiated a major overhaul of the tax code in early 2007. The Value Added Tax (VAT) was brought into effect, replacing six different taxes. Prior to the implementation of the VAT, it had been relatively easy to evade sales tax, and many businesses were in violation of tax code.

While the adjustment to VAT has been difficult, it may improve day-to-day life because of the significant additional funds the government will have available for public spending.

President Bharrat Jagdeo has made debt relief a foremost priority of his administration. He has been quite successful, getting US$800 million of debt written off by the International Monetary Fund (IMF), the World Bank and the Inter-American Development Bank (IDB), in addition to millions more from other industrial nations.

Mr. Jagdeo was lauded by IDB President Moreno for his strong leadership and negotiating skills in pursuing debt relief for Guyana and several other regional countries.

Major private sector organizations include the Private Sector Commission (PSC) and the Georgetown Chamber of Commerce & Industry (GCCI).