– projects GDP growth of just under 4% for 2010
Despite external and domestic shocks in 2010, Guyana’s economy has exhibited resilience, registering a fifth consecutive year of robust growth, a release from an International Monetary Fund (IMF) mission to Guyana has stated. The mission was in Guyana from November 8-18 to conduct the Fund’s yearly review of the country’s economy.
Chief of the IMF Mission, Therese Turner-Jones, highlighted that Real Gross Domestic Product (GDP) is projected to grow by just under 4 percent this year, above the outturn in 2009, supported by increased activity in the sugar, gold, and services sectors.
“Notwithstanding downside risks, including the global environment and concerns in the sugar sector, the team expects growth to continue on a steady path, supported by expansion in the mining and construction sectors. Despite a small increase reflecting movement in food prices, inflation remains relatively low,” the release stated.
The IMF release said discussions centred on strategies to maintain fiscal and debt sustainability over the medium-term in the context of the Low Carbon Development Strategy, to further enhance economic flexibility and resilience to shocks, while continuing to reduce poverty.
Fiscal consolidation on the other hand, remains a priority, consistent with the authorities’ commitment to maintaining a sustainable medium-term debt path.
According to Turner-Jones, there were recommendations to strengthen ongoing efforts to improve the fiscal outturn, given existing challenges in the sugar sector. The maintenance of a strong fiscal stance would also help to support external sector stability.
Continued improvements in public financial management and tax administration, especially with respect to compliance and risk management, were welcomed, as well as the increase in the gross foreign reserves position, to about five months of imports at present.
The banking system remains liquid and well capitalized; however, continued vigilance is warranted, particularly against the backdrop of the ongoing housing boom, the release stated.
Recent enhancements in financial sector supervision and regulation, including new guidelines on risk management, are also welcomed and the dissemination of financial sector indicators, which now appear on the Bank of Guyana’s website, were commended.
The IMF Executive Board is expected to discuss Guyana’s Article IV consultation in January 2011.
The mission expressed its appreciation for the open communication and close collaboration with government officials as well as other stakeholders, with whom they  exchanged views. (GINA)