–ECLAC’s latest ‘fiscal panorama’ report reveals
GUYANA’S economy has experienced significant growth over the past three years, leading to a substantial reduction in public debt, according to the United Nations Economic Commission for Latin America and the Caribbean’s (ECLAC)’s “Fiscal Panorama of Latin America and the Caribbean 2023” report.

The country’s debt-to-GDP ratio fell by an impressive 16 percentage points between 2021 and 2022, as a result of a 62.3 per cent increase in economic output in real terms, due to the commencement of offshore oil-and-gas production, ECLAC said.
The latest report highlights: “This increase was due to the central government’s first withdrawal from the sovereign wealth fund set up to manage the country’s oil revenues (the Natural Resource Fund), with a view to financing public investment in priority sectors.”

Under the leadership of the People’s Progressive Party/Civic (PPP/C), there has been active steps to make strategic investments and manage the nation’s finances responsibly.
Senior Minister within the Office of the President with responsibility for Finance, Dr. Ashni Singh, said that the government has been borrowing prudently to finance crucial investment initiatives and to ramp up social programmes.

“As the economy grows, our capacity to borrow increases and we intend to use that capacity to finance an aggressive programme to modernise and transform our country and improve the lives of Guyanese peoples,” Dr. Singh said in a recent interview.
Despite criticism and naysayers, the PPP/C government successfully reduced the country’s debt burden, achieving a debt-to-GDP ratio of only 23 per cent as of 2022.

This achievement places Guyana among the countries with the lowest debt levels globally, highlighting the sound management of the economy under the PPP/C’s leadership.
General Secretary of the PPP, Dr. Bharrat Jagdeo had also recently reaffirmed the government’s commitment to a responsible debt policy, opting for fixed-rate loans from reputable international and multilateral institutions, rather than variable rate loans.

While dismissing claims that the PPP-led government is squandering oil revenues, Dr. Jagdeo had said that his party made strategic investments in critical areas such as infrastructure, healthcare, and education, aiming to enhance the lives of citizens.