THE International Monetary Fund’s (IMF) most recent pronouncements have confirmed that Guyana’s economic diversification programme is in full swing, according to Vice-President Dr. Bharrat Jagdeo.

He made this known during his press conference on Thursday, in which he highlighted the IMF’s recently concluded Article IV consultation with Guyana.

“Our economic diversification programme is in full swing and this is supported by what the IMF said… that the real non-oil GDP expanded by 13 per cent, reflecting a solid base performance across sectors,” he said.

This, he added, is massive by any standard, as some countries in the world would consider lower percentage growth rates as high.

“Our non-oil sector is growing at 13 per cent and the oil sector is growing even more, but that is deliberate because it reflects a policy for keeping the economy diversified, which is one way of fighting off the Dutch disease,” Dr. Jagdeo, who is well-versed on economic matters, said.

Meanwhile, he went on to note that the IMF report added that moving forward, the government should continue strengthening Dutch disease mitigation policies and the implementation of a medium-term fiscal framework focused on smooth spending.

He explained that the report added that the country should support diversification of the economy, including export diversification strategies and expanding the manufacturing sector through reform and investment programmes.
Dr Jagdeo went on to note that the report emphasised “supporting the diversification of the economy including export diversification strategies and the expansion of the manufacturing sector through structural reforms and investment programmes while enhancing productivity in non-oil tradeable sectors by improving business environment including through investing in resilient infrastructure ensuring reliable and affordable energy supply investing in human capital and strengthening governance.”

Against this backdrop, he indicated that for persons who have been critical of the government’s approach to the economy and its management style, it has been made clear that this is precisely what the government is doing.

As such, he said the government has developed a medium and long-term framework that shows the fiscal deficit coming down significantly.

To this end, he stated that when construction on major projects around the country is complete, Guyana’s fiscal deficit shrinks.

“So, when we have built out the schools and the hospitals and the road networks and the power plants, etc… we don’t need capital expenditure on these issues. It will cause a massive reduction in the fiscal deficit,” Dr Jagdeo added.