– As Guyana’s Economy Grows
-by Celestine Chacon
The International Monetary Fund says prudent economic policies continue to support Guyana’s strong economic growth, while helping to strengthen the country’s resilience and long-term development.
In its latest Article Four Consultation report, the IMF highlighted the Government’s focus on economic diversification and sustainability.
The financial institution notes that Guyana maintains one of the lowest debt-to-GDP ratios in the Western Hemisphere.
According to the report, major public investments in infrastructure and human capital are supporting growth in the non-oil economy.
The IMF further pointed out that monetary operations have helped manage liquidity and exchange rate pressures, while fiscal and supply-side measures have helped cushion the impact of rising prices.
Guyana’s economy grew by more than 19 per cent in 2025, following average growth of nearly 40 per cent in 2023 and 2024.
The report also highlighted an improvement in the country’s fiscal position, with the overall deficit narrowing to 5.5 per cent of Gross Domestic Product in 2025.
Meanwhile, President Irfaan Ali has pointed to the impact of oil production and economic expansion on Guyana’s debt burden, noting that publicly guaranteed debt declined from 47.4 per cent of GDP in 2020 to 24.3 per cent in 2024.
“When you look at what is in our natural resource fund and you look at projected revenue, you will see how easily we can cover our external debt. That allow, of course, more room for investment in health, investment in education, social welfare, infrastructure,” he said.
The IMF also reported that Guyana continues to maintain one of the lowest debt-to-GDP ratios in the Western Hemisphere, and also faces a low risk of external and overall debt distress in its 2025 assessment.
The Fund endorsed the country’s focus on economic diversification, resilience and sustainability, noting that continued accumulation of oil revenues is helping build financial buffers.
The IMF expects Guyana’s economy to continue performing well. However, it warned that rising global food and energy prices pushed inflation higher in 2026, while wage increases need to be monitored to ensure businesses remain competitive.
President Ali has similarly warned that Guyana must not become complacent.
“We cannot be complacent. The immediate threat is no longer insolvency. The central challenge is ensuring that rapidly increasing financing and productive asset remains manageable, and also that our productivity continues to improve, expand, and get better.”
The IMF’s assessment underscores the importance of maintaining sound economic policies while investing in infrastructure, strengthening non-oil industries and building financial buffers to support Guyana’s continued development
