Jagdeo says

PRESIDENT Dr. Irfaan Ali has been doing an excellent job of sharing Guyana’s inspiring story of rising from despair to prosperity, a story that deserves to be heard worldwide.

This is according to the General Secretary of the People’s Progressive Party (PPP), Dr. Bharrat Jagdeo, during a press conference on Thursday at Freedom House.

Moreover, President Ali’s recent engagements in the United States have resulted in talks of global development and the promotion of ever-lasting partnerships.

“We need to get the wonderful story taking place now, on the global stage… President Ali has been doing a great job bringing the story of Guyana to the rest of the world,” Dr. Jagdeo affirmed.

Touching on some nay-sayers that have been criticizing Guyana’s progress, the PPP General Secretary referenced the recent International Monetary Fund (IMF) report, which says otherwise.

Dr. Jagdeo even posited that the PPP government is proud of their national policies since they have guided Guyana down the path of progress.

He stated: “We [PPP] have nothing to hide about our national policy. In fact, we’re very proud of it,” adding that they have stayed in tune with their promises made to the people of Guyana.

The IMF report documenting the conclusions of its Article IV Consultation with local authorities said Guyana has experienced record real Gross Domestic Product (GDP) growth, with a staggering 62.3 per cent increase in 2022 – the highest in the world.

The growth is expected to continue in 2023, with a projected 38 per cent increase in real GDP, as Guyana continues to build its image as a top destination for investment.

Pointing to sector achievements which drive this growth, the IMF report highlighted that oil production is ramping up with the coming on stream of a third oil field, and growth in the non-oil sector, which is supported by the implementation of a fast-paced public investment programme focused on providing transportation, housing, and flood management infrastructure, and raising human capital.

After a strong 2022, in the first half of 2023, real non-oil GDP grew by 12.3 per cent. The report stated that the outlook for medium-term growth is better than ever before, as the country’s oil production will continue to expand rapidly with three new approved fields set to come on stream between 2024 and 2027, and a sixth field is expected to come on stream in the first half of 2028.

Sustained real non-oil GDP growth of 5.5 per cent is projected, as the government continues its ambitious plans to address developmental needs, the IMF said.

“Guyana’s favourable medium-term growth prospects are accompanied by upside and downside risks. On the upside, further oil discoveries would continue to improve growth prospects.

“Construction growth and strong public investment may support higher than expected short-term non-oil growth, but could also lead to inflationary pressures and the appreciation of the real exchange rate beyond the level implied by a balanced expansion of the economy, overheating, and the crowding out of credit to the private sector,” the international organisation said, adding: “Adverse climate shocks, and volatile or lower than projected commodity prices, may also negatively impact the economy.”

However, the IMF acknowledged that the fiscal and monetary policy mix is appropriate at this time.

“The IMF views the current expansionary fiscal policy stance as appropriate, given the country’s development needs and the existing slack in the economy,” the international organisation said.

Monetary policy appropriately balances the expansionary fiscal stance. The increase in broad money (money supply) of about 10 per cent until June 2023 (since December 2022), and in credit to the private sector of about five per cent in the same period, remain below the nominal growth of the non-oil economy.

Although credit to the government is also increasing, it is not crowding out credit to the private sector. Further, the IMF noted the Bank of Guyana’s monitoring of macro-financial risks with eight indicators, including credit-to-GDP measures and the systemic risk matrix.