GUYANA’S economic performance is nothing short of a miracle. According to the latest data released by the International Monetary Fund (IMF), the country is poised to continue to outperform other countries in the Region in terms of economic growth. Guyana recorded the world’s highest real GDP growth in 2022 with an impressive growth of 62.3 per cent.

Guyana’s growth rate is all the more spectacular when seen against the global average and its historical past when the country was ranked among the poorest in the world. When the PPP/C took over the reins of political power on October 5, 1992, the economy was in ruins and Guyanese were burdened with one of the highest per capita debts in the world.

Fast forward to the Guyana of today under the PPP/C administration. According to the World Bank, Guyana is now ranked among the fastest- growing economies in the world. This is despite a slowing down of average global growth rate which was 4.1 per cent in 2022, a marked deceleration from the previous year of 5.5 per cent. The situation in Latin America and the Caribbean is no better and in fact is slightly lower, with GDP growth projected to increase by a mere 1.5 per cent.

According to an Economic Commission for Latin America and the Caribbean (ECLAC) report, the dynamics of the global economy remains on a path of low economic growth. The report attributed low growth to the negative effects of an intensification of climate shocks, the COVID-19 pandemic and the war in Ukraine.
The projection for 2024 indicates that low economic dynamism will persist in the Region. The international context will continue to be unfavourable with growth in global GDP and trade far below historical average. At the same time, in the domestic arena, fiscal policy space will continue to be limited.
Under these circumstances, ECLAC forecasts average growth in 2024 to be around 1.2 per cent for South America, 2.1 per cent for Central America and 2.8 per cent for the Caribbean, with the sole exception of Guyana. A deeper appreciation of Guyana’s economic ‘tsunami’ can be seen from the wide margin of growth between Guyana and the rest of the Caribbean, with the second highest growth of 6.2 per cent in St. Vincent and the Grenadines and Panama with six per cent.

Guyana, as the ECLAC report pointed out, is the only bright star in an otherwise gloomy economic galaxy. And even though the impact of oil revenues does play a significant role in that economic miracle, oil is by no means the only variable in the country’s developmental matrix. In fact, the non-oil segment of the economy also displayed impressive growth rates of 8.3 per cent.

The growth momentum in Guyana is proceeding at an accelerated pace. Guyana has already recorded an overall growth rate of 36.4 per cent due largely to prudent economic management by the PPP/C administration.

The macroeconomic fundamentals continue to be good with strong export earnings and a favourable balance of trade. The rate of inflation is largely contained, which along with enhanced wages and salaries have resulted in a bigger basket of goods and services for the Guyanese consumer.

The truth is that Guyana under the PPP/C administration has always experienced high economic growth and social progress. Indeed, the records will show that it was under PPP/C administration that the quality of life of Guyanese showed significant improvements in terms of access to basic services and infrastructural development. This is manifested in all facets of life such as home ownership and access to quality education and health services, water and electricity.

Guyana today has moved past the days of economic stagnation and social decline, thanks to the restoration of democratic rule and good governance.

As the country advances in the direction of One Guyana as envisaged by President, Dr. Mohamed Irfaan Ali, more can be expected in terms of the delivery of economic, social and cultural goods. In all of this, the economy is fundamental. A growing economy is a necessary condition for an enhanced quality of life. Indeed, there is a dialectical relationship between democracy and economic growth as our own experience has taught us over the decades.