–says Dr. Singh

GUYANA’S improved economic outlook is being credited to the government’s fiscal policies and measures outlined in Budgets 2020 and 2021.
It was reported recently that the International Monetary Fund (IMF), in its latest World Economic Outlook report for 2021, revised Guyana’s projected real Gross Domestic Product (GDP) growth upward, nudging it from the initially reported 8.1 per cent to 16.4 per cent.
Senior Minister in the Office of the President with responsibility for Finance, Dr. Ashni Singh, in commenting on the revised projection for 2021, said: “So, the last time the IMF would have done their forecast on the Guyanese economy, which I think would have been around September/October 2020, there would have been a lot of uncertainty and perhaps, less clarity on where the country was going and what the prospects and opportunities for the country would be.”

Since then, he said, the national budgets have clearly outlined the government’s plans and position on key issues, resolving any lingering uncertainty.
Minister Singh noted that the IMF’s projection is only marginally lower than what the government has calculated. In presenting budget 2021, the senior minister had said that Guyana expects the economy to grow by 20.9 per cent this year.
“Obviously, it’s very high growth, growth at that level. Between 17 per cent and 20 per cent is very strong growth so there is a very close convergence. The IMF’s growth projection is slightly more conservative than the government, but what they both point to is a very strong positive growth outlook for the economy in 2021,” Dr. Singh said.
The IMF periodically updates its outlook on economic growth for a given year, for all recognised countries.

Since oil production started in late 2019, the IMF has produced economic outlook reports which project significant growth for Guyana, despite the protracted economic uncertainties, which began after the successful passage of a no confidence motion against the then sitting A Partnership for National Unity + Alliance For Change (APNU+AFC) Government, in December 21, 2018.
The motion was followed by a series of court cases and a five-month-long electoral saga, culminating in attempts to alter the results of the March 2, 2020, General and Regional elections.
The IMF had initially projected 86 per cent economic growth for Guyana in 2020. However, that growth was reduced by the fallout from the COVID-19 pandemic, the absence of a budget for most of the year, and the protracted elections. (DPI)