–notes government’s timely audits of available financial accounts, efforts to strengthen internal audit practices
THE International Monetary Fund has once again given Guyana high marks for the way it is managing its rapidly growing oil wealth, commending the government for “sustained prudent fiscal policies” and a borrowing strategy that keeps the country’s risk of debt distress at its lowest possible rating.
In its Article IV Mission concluding statement, IMF staff painted a picture of a country that continues to punch well above its weight on fiscal responsibility even as spending needs multiply.
While the fiscal deficit is expected to widen somewhat in 2026, driven largely by social transfers and electricity subsidies aimed at cushioning citizens from rising costs, the Fund projects an improvement in 2027, thanks to the built-in one-year lag in the Natural Resource Fund (NRF) withdrawal rule that automatically moderates spending.
Perhaps the most striking endorsement in the report is the Fund’s recognition that Guyana’s careful stewardship has produced “rapid accumulation of substantial NRF balances and one of the lowest debt-to-GDP ratios in the hemisphere.”
The IMF noted that Guyana’s budget documents already provide detailed medium-term projections, performance indicators, and macroeconomic assumptions, reflecting a strong foundation, the Fund said, for building out even more sophisticated fiscal guideposts as the economy continues its transformation.
One idea under discussion is anchoring policy to the non-oil primary balance, which would help balance the needs of Guyanese today against those of future generations, while accounting for the higher cost of delivering public services in a low-population-density country.
The report also highlighted real momentum on institutional modernisation. The authorities are rolling out digital solutions across key public services, including efforts to make government information systems talk to each other more efficiently.
Financial account audits are proceeding on schedule, internal audit capacity is being strengthened, and a new centralised digital procurement platform is helping safeguard the quality of public spending as expenditure expands rapidly.
The Fund also acknowledged the government’s work to resolve outstanding cost-oil audits, including through arbitration.
On anti-corruption and anti-money laundering, the IMF was similarly encouraged. Guyana is pursuing what the Fund called a “comprehensive approach” to AML/CFT, including concrete steps to close gaps flagged in its 2024 Mutual Evaluation Report by the Caribbean Financial Action Task Force, alongside new AML legislation and a broader modernisation of the legal framework.
The Fund singled out progress in the gold mining sector, where a planned risk assessment of extractive industries is expected to help identify remaining vulnerabilities.
Some beneficial ownership information is already publicly available; this is a transparency measure many resource-rich nations struggle to implement, and the IMF encouraged further work on public access and enforcement.
Continued reinforcement of the Integrity Commission, including stronger compliance with asset declaration rules, rounds out a governance agenda that the Fund views as moving in the right direction.
As the Fund put it, staff will continue engaging with the authorities on how best to calibrate medium- and long-term fiscal guideposts to Guyana’s development needs.
