…commends authorities on strengthening transparency and governance
…welcomes broad-based economic expansion
From 4.4% this year, Guyana’s economy is projected to grow by 86% next year, according to the International Monetary Fund(IMF).
The IMF projected in its September 2019 report, that Guyana’s medium-term prospects are very favorable, citing oil production as key to the expected growth.
The IMF referenced earlier predictions for first oil which was initially scheduled for early 2020.However, several days ago, Hess Corporation, a partnering firm of American oil giant Exxon, upped the dates for oil production to December this year in the oil-rich Stabroek Block offshore Guyana.
According to the IMF, its directors welcomed Guyana’s “broad-based economic expansion in recent years underpinned by prudent macroeconomic policies.”
It said too, that the directors noted the “continued progress in strengthening transparency and governance” and encouraged sustained efforts to implement the recommendations of the 2019 Extractive Industries Transparency Initiative Report, which would promote effective and transparent management of the oil wealth.
The IMF said its directors encouraged the authorities here to use the opportunity presented by oil revenues to undertake structural reforms to support economic diversification, tackle skilled labor shortages, and achieve inclusive and equitable growth.
“Priority should be given to address infrastructure bottlenecks and upgrade the education system. In addition, promoting more flexible working arrangements could help increase female labor participation,” the IMF recommended.
The IMF said its directors underscored the importance of improving the business environment and enhancing competitiveness. They also recommended putting more efforts into developing climate-resilient infrastructure networks.
On Saturday a Bloomberg report, noted that the 2020 projections by the IMF on Guyana’s economic expansion is 14 times the projected pace of China, driven by ExxonMobil discovery of oil here.
“We’re moving from a very low base to a stratospheric leap,” Finance Minister Winston Jordan was quoted as saying in the report.
According to the IMF, Guyana’s $4 billion annual gross domestic product (GDP) is also expected to expand to about $15 billion by 2024. The commencement of oil production in the weeks ahead will substantially improve Guyana’s medium- and long-term outlook, the report said.
The oil sector is projected to grow rapidly, accounting for around 40 per cent of GDP by 2024 and supporting additional fiscal spending annually of 6.5 per cent of non-oil GDP on average over the medium term, which will help meet critical social and infrastructure needs.
Considering the recent oil finds,Norway-based Rystad Energy had ranked Guyana second for the most oil discoveries for this year.
The country was also named the fastest growing economy in the world by the Nasdaq Stock Exchange.