-Even in the face of oil discoveries, global economic uncertainty
-Local economy to maintain strong economic growth
Guyana has once again received appraisal for its careful and effective handling of its rapidly growing economy by the International Monetary Fund (IMF). This recognition comes even in light of significant oil discoveries and global economic uncertainty, which makes the task of governance even harder.
Speaking at a press briefing on Friday, Director of the International Monetary Fund (IMF), Western Hemisphere Department, Rodrigo Valdes lauded Guyana’s efforts. Valdes pointed out that natural resources can either be a blessing or a curse for a country, depending on how these are managed by the respective governments.
According to the IMF’s representative, “We’re seeing a very good management in Guyana. Now, Suriname has to establish the framework for this to work well for them.”
Ana Corbacho, Deputy Director of the same department, also weighed in on Guyana’s progress, stating that Guyana is well on its way to maintaining its rapid economic growth within a stable macroeconomic environment.
Guyana recorded an impressive 47 percent increase in economic growth between 2022-2024 she said, noting that this is one of the fastest rates not only in the Caribbean region but globally.
Corbach stressed the importance of maintaining macroeconomic stability and strengthening resilience to shocks in the current global uncertain environment.
This is not the first time Guyana has received recognition from the IMF for its strategic economic policies.
Only in March, the IMF’s 2023 Article IV Consultation with Guyana released its findings and applauded the Government of Guyana for its series of policies and initiatives that have been rolled out to transform the economy.
The IMF highlighted the suite of measures implemented by the government in 2022 and 2023, resulted in a decline in the inflation rate in 2023.
The government’s social transfer policies were also described as a move in the right direction to ending poverty, by increasing disposable income for Guyanese.
According to the IMF’s findings, major projects like the gas-to-energy initiative advances short-term growth, while laying the groundwork for long-term development through reliable electricity and improved infrastructure.
Guyana’s economy is on move, as its real gross domestic product (GDP) and real non-oil GDP are projected to grow by about 10¼ per cent and 13 per cent respectively in 2025.
This projection shows that the local economy is growing due to the economic policies led by the President, Mohamed Irfaan Ali Administration.
While emphasis is placed on ensuring a stable economy, Guyanese have been benefitting from cash transfers, including the national $100,000 cash grant for every Guyanese 18 year and older, a Newborn cash grant of $100,000 and a Universal Health Voucher amounting to $10,000.
It adds to the many cash transfers that have been provided by the People’s Progressive Party/Civic (PPP/C) Administration.
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