The International Monetary Fund (IMF) has praised Guyana’s robust economic growth and the government’s prudent fiscal management policies.
Following their evaluation, the IMF team predicts further economic expansion for the country in 2023.
This positive outlook is attributed to the rapid development of the oil and gas sector, coupled with effective financial management strategies. In 2022, Guyana achieved record real GDP growth of 62.3 percent, the highest globally. The IMF anticipates continued rapid growth in 2023, projecting a 38 percent increase. Furthermore, in the first half of 2023, real non-oil GDP surged by 12.3 percent.
The IMF commends the government’s fiscal policies, deeming them appropriate for the country’s developmental needs and economic conditions. They recommend vigilant monitoring of macroeconomic and financial indicators, suggesting adjustments to monetary policy and the use of macroprudential tools as necessary.
Additionally, the IMF suggests a revision of the exchange rate framework to optimize long-term benefits for the country.
Looking ahead, the IMF projects a balanced fiscal approach, targeting a zero overall fiscal balance by 2028. This strategic approach is expected to facilitate further economic expansion (with an average real GDP growth of 20 percent per year from 2024-2028) without creating macroeconomic imbalances.
The IMF also commends the government’s prudent debt management, noting that increased credit to the government has not impeded credit availability to the private sector. The Bank of Guyana is actively monitoring macro-financial risks through various measures.
The IMF acknowledges Guyana’s commendable initiatives, including the Low Carbon Development Strategy (LCDS) framework, updated Anti-Money Laundering and Countering the Financing of Terrorism (AML-CFT Act), financial transparency with the Natural Resource Finance Act, climate endeavors, and strides in reducing unemployment and enhancing the business climate.
Reporter: Josiah Williams, NCN News