THE Inter-American Development Bank (IDB) has released a new quarterly report titled ‘Headwinds Facing Post-Pandemic Recovery in the Caribbean’.

In this report, the IDB said that Guyana’s inflation rate has been above historical levels since mid-June 2021 due to a challenging global context driven by high energy prices and disrupted supply chains.

However, the government’s policy responses such as the creation of and, higher inflows into the Natural Resources Fund; its efforts at strengthening food security, and promotion of the Vision 2025 by 25 policy initiative, which seeks to reduce extra CARICOM food imports by 25 per cent by 2025; and its organizing of investment forums to promote technological improvements in agriculture and foreign direct investment were commended.

“At the micro level, to support productive sectors and vulnerable populations, the government introduced several policies. The excise tax on petroleum was reduced from 20 to 10 percent in January, then reduced further to zero in March. Tariffs on public utility services such as water and electricity have remained fixed, with the government absorbing higher operating costs.

“In addition, US$4.8 million was allocated for the purchase and distribution of fertilizer for farmers to reduce operating costs, and US$ 3.8 million was distributed in the form of one-time cash grants for households in the rural interior and riverain communities,” the report stated.

The increase in public assistance which benefits approximately 18,000 persons and the increase in Old Age Pension, which benefits approximately 65,000 senior citizens were also commended in the IDB report.