THE International Monetary Fund (IMF)’s recent praise of Guyana’s economic management and social transfer policies is a resounding endorsement of the People’s Progressive Party/Civic (PPP/C) government’s initiatives to engender inclusive growth and poverty alleviation.

Since assuming office in 2020, the PPP/C has been at the forefront of transforming Guyana into one of the fastest-growing economies in the world, with a focus on both the oil and non-oil economies.

The government’s strategic investment in social welfare, infrastructure, and economic diversification has not only increased disposable income, but also reduced the nation’s poverty rate significantly.

The series of social programmes initiated by the government, including the re-introduction and improvement of the education grant, the increase in old-age pensions, and specific cash transfers are demonstrative of a commitment that is clear to better the lives of every Guyanese.

These programmes, coupled with tax and health initiatives, have provided concrete relief for citizens, and underscore the government’s determination for action over words. President Dr. Irfaan Ali’s emphasis on using the country’s wealth to grow both national and personal wealth shows vision that is people-oriented.

The advice of the IMF to include these social transfers in a medium-term fiscal framework is well-placed, since it would also promote inclusive growth, and enable Guyana to achieve its Sustainable Development Goals (SDGs).

The government’s prudent fiscal management, as indicated by the reduction of the public debt-to-GDP ratio from 47.4% in 2020 to 24.3% in 2024, says a lot about its preference for sustainable development over short-term returns.

Nevertheless, the IMF’s caution about the dangers of overheating is well-timed. As Guyana continues to experience high economic growth, it is essential that the government stays alert, and makes policies that deflect inflationary pressures, and encourage the distribution of growth gains in an equitable way.

The ongoing investments in infrastructural development and diversification will be key to sustaining this trend of growth, while steering clear of dangers. Guyana’s economic growth under the PPP/C government is a model of good governance and inclusive growth.

The government’s commitment to social welfare and economic stability has been noted globally, and its continued focus on sustainable growth will be key to keeping Guyana on the path of prosperity for all its citizens.