Guyana continues to lead global growth

–IMF projects 57.8 per cent growth by the end of this year, 25.2 per cent next year

GUYANA continues to rank among the countries worldwide with the fastest rate of economic growth, as the country is on course to growing 57.8 per cent this year, according to the International Monetary Fund (IMF).

Driven by continued progress in the oil and gas sector, and enhanced productivity in other productive sectors, Guyana is well set to record significant growth this year and beyond.

Specifically, in addition to the massive level of growth projected for this year, the country which sits on the edge of South America, is set to grow 25.2 per cent next year.
The projections mirror those released recently by the World Bank, in its latest report: “New Approaches to Closing the Fiscal Gap.”

The nation’s regional counterparts, according to the World Bank and IMF, are also expected to perform well in the near future and recover from the debilitating effects of the COVID-19 and, to some extent, the ongoing war in Ukraine.

“Latin America and the Caribbean economies have recovered to their pre-pandemic levels and the region has regained some sense of normalcy, but economies need to be reignited in order to avoid a new low-growth cycle,” the World Bank said.

The international financial institution said that social and infrastructural investments could be important drivers of growth and shared prosperity.

The report estimates regional Gross Domestic Product (GDP) will grow by 3.0 per cent in 2022, a higher than previously expected rate due to rising commodities prices.

Regarding Guyana, the IMF, in a recent report, said increasing oil production could help transform the economy, address development needs, and build substantial buffers to absorb shocks.

Oil production is expected to increase significantly with the coming on stream of two large oilfields during 2023–2026. And, as it is now, Guyana’s commercially recoverable petroleum reserves are the third largest in Latin America and the Caribbean, and one of the highest levels of oil reserves per capita in the world.

The IMF said: “This could help Guyana build up substantial fiscal and external buffers to absorb shocks while addressing infrastructure gaps and human development needs.”

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