GEORGETOWN, Guyana (CMC):

Despite the effects of the global financial downturn and high commodity prices this year, President Bharrat Jagdeo says he is satisfied that the Guyanese economy has generally held its own and is on track to record three per cent growth in 2008.

He deems the overall figure for growth to be reasonable, bearing in mind the global economic circumstances.

Speaking to reporters during a news conference at his official residence at the weekend, Jagdeo noted that there had been an increase in rice and gold production, while the performance of bauxite held steady during the year.

However, the Guyanese leader acknowledged that the country's performance in 2008 could have been better had it not been for the significant deterioration in sugar production, one of the country's main economic activities.

"The reasons they (GUYSUCO) have given is that because of heavy rainfall, the water tables are high and it is affecting the root of the cane, the joints have shortened and, therefore, they make less sugar from the cane," he explained.

He also noted that pest infestation and the delay in the handing over of the Skeldon Sugar Factory had also contributed to the decline in the sugar industry.

PLANS LAGGING

"We are supposed to grow more cane there to feed the factory. They are behind on that plan and we were supposed to buy some 30 per cent of the cane from private farmers. They are also behind in supplying those canes," he said.

"Those are the three reasons the management has given. I do not doubt that they play a significant role in the drop in production; but I feel that we have significant management issues at the company too, and next year you can expect to see some changes."

The president also issued a call to all stakeholders in the sugar industry to work together in ensuring that the industry returns to its 'glory days'.