The Ministry of Finance’s mid-year report has revealed substantial growth in household lending, driven by an increase in employment and economic opportunities.
According to the report, lending for motor car purchases rose by 11.6% in the first half of the year, leading to the registration of 9,420 new vehicles. This represents a significant 41.9% increase compared to the same period in 2023, showcasing the growing appetite for personal transportation among the Guyanese population.
A chart from the report highlights this trend, showing a steady rise in motor car lending over recent years, with a sharp uptick in 2023. The expansion of credit for motor vehicles suggests that more households are benefiting from improved financial access, supported by positive economic conditions.
In addition to vehicle lending, the report also notes a 7.3% growth in real estate mortgages for private dwellings during the same period. This increase is attributed to the government’s focus on house lot allocations and policies that promote affordable home ownership. The chart illustrating trends in real estate mortgages reflects a steady climb in both house lot allocations and mortgage lending, indicating a thriving real estate market.
The rise in motor car ownership and home mortgages is seen as a positive economic signal, with the Ministry of Finance noting that household lending is expected to continue its upward trend as more employment opportunities become available.
This growth comes as Guyana’s economy continues to expand, driven in part by the oil and gas sector. However, the government has been actively pursuing policies aimed at ensuring this economic boom translates into tangible benefits for households, particularly through the promotion of home ownership and personal financial stability.
With continued support from government initiatives, both the real estate and automotive sectors are expected to maintain momentum in the latter half of the year, further driving economic growth.
