Guyana’s economy will continue to experience record growth – IMF
WASHINGTON, (CMC) – The International Monetary Fund (IMF) says the Guyanese economy continues to experience record growth, supported by the government’s modernisation plans and unparalleled oil and gas sector expansion.
The Washington-based financial institution executive board, in its assessment of the Caribbean Community (Caricom) country, said Guyana’s external position at end-2022 is moderately stronger than the level implied by fundamentals and desired policies.
“Guyana’s debt-sustainability analysis (DSA) indicates that the risk of overall and external debt distress remains moderate, with debt dynamics improving significantly with incoming oil revenues,” the IMF executive board said.
“Overall real GDP (gross domestic product) growth is projected to grow 38.4 per cent in 2023 and on average of 20 per cent per year during 2024-28,” IMF added.
It said Guyana’s very favourable medium-term growth prospects are accompanied by upside risks, key among them being further oil discoveries that would continue to improve growth prospects, and downside risks, inflationary pressures and the appreciation of the real exchange rate beyond the level implied by a balanced expansion of the economy.
They noted that adverse climate shocks, and volatile or lower than projected commodity prices may also negatively impact the economy.
“The key challenges are managing large resource revenue inflows to ensure macro-economic stability and sustainability while investing steadily in people, physical infrastructure, and institutions,” said the IMF.
“Given the medium-term risks of inflationary pressures and real exchange rate appreciation beyond the level implied by a balanced expansion of the economy, staff recommends a continued focus on maintaining macroeconomic stability through an appropriate policy mix,” the IMF executive board stated.
The IMF said Guyana’s commitment to fiscal discipline is welcomed and allows for a balanced growth path, with moderating fiscal impulses projected to achieve a zero overall fiscal balance by 2028.
