GUYANA is on course to record economic growth of 37.2 per cent by the end this year, according to the International Monetary Fund (IMF).

Driven by prudent fiscal management and growing sectors, including the burgeoning oil and gas sector, Guyana is on course to record significant economic growth and to persevere through global and domestic challenges.

The IMF in its latest publication, the World Economic Outlook: A rocky recovery, reported that real gross domestic product (GDP) growth could be even higher next year, reaching 45.3 per cent.
Recently, the World Bank projected that this year is going to be “substantially bleaker” for the Latin American and Caribbean region than it was last year, but Guyana is yet again expected to stand out among its counterparts with economic growth projected to hover above 20 per cent over the next three years.

The international financial institution in its latest report on Latin America and the Caribbean: “The Promise of Integration Opportunities in a Changing Global Economy,” related: “The Latin America and the Caribbean (LAC) region has proved to be relatively resilient in the face of increased debt stress, stubborn inflation, and uncertainty arising from the Russian invasion of Ukraine.

“Income and employment have largely recovered from the pandemic, poverty has receded, and markets remain guardedly optimistic about the near future. However, headwinds have picked up, and the 2023 outlook is substantially bleaker than 2022.”

Guyana is the only country on course to record double-digit growth this year and in the near future. The country, according to the World Bank, is set to record real gross domestic product (GDP) growth of 25.2 per cent this year, 21.2 per cent next year and 28.2 per cent in 2025.

Consistent growth is expected even as the IMF has reported that tentative signs in early 2023 that the world economy could achieve a soft landing—with inflation coming down and growth steady—have receded amid stubbornly high inflation and recent financial-sector turmoil.

Despite the global situation, based on its economic performance over the past two years, Guyana has a solid foundation upon which to continue broadening its horizons and advancing significantly, especially in the medium term.

President, Dr Irfaan Ali, early this year said the government’s targeted expansion of the other economic sectors, and diversifying of the economic pillar is showing direct results due to the policy formulation and measures that have been implemented.

“If you look at what is happening in different sectors, we see that there is renewed energy. There is renewed optimism; renewed investment in the manufacturing and constructive sectors, extractive sector, productive sector, agriculture, agriculture processing,” the Head of State said.

He added, “The last two years was really spent on rebuilding the architecture and framework that supports the upliftment and development of these sectors. In the coming years, we’ll see, in a greater sense, the impact of the investments we are making in different sectors.”

According to the President: “Though 2022 saw severe economic shocks, Guyana’s economic performance was still remarkable, with the shock of the global crisis not fully impacting the lives of the people in Guyana, thanks to initiatives, policies and measures that the government implemented that brought stability to our internal system.”

Notwithstanding all of the international pressure, President Ali said the government was able to reduce the impact of inflation, the cost of living and food crises and keep prices relatively stable.
Though many countries experienced double and triple-digit inflation this year, Guyana kept inflation in single digits, with its projected seven per cent being below the global inflation rate.
“From a macroeconomic perspective, notwithstanding the complex international environment we’re operating in, we have seen the true results of the policies and measures adopted by the People’s Progressive Party/Civic government,” President Ali had said.