Guyana to grow at 25 per cent annual rate over next three years – President Ali

Cementing its place as the fastest-growing economy in the world, Guyana is projected to grow at an average 25 per cent annually from 2023 to 2026, with growth in the non-oil sector projected at 7.9 per cent this year.

This will build on the 11.5 per cent growth in the non-oil sector last year.

The country continues to experience economic growth inspite of the various crises currently facing the globe, largely driven by food and climate insecurity.

President, Dr Mohamed Irfaan Ali disclosed this information during a press conference held at the Office of the President, Georgetown, on Wednesday.

He told media operatives that Guyana’s economy has almost tripled since the end of 2020, with the nominal Gross Domestic Product (GDP) moving from $1.1 trillion in 2020 to $3.1 trillion at the end of 2022.

This, he said, is largely owing to the start-up of oil production on the Liza Unity FPSO.

“Despite challenges, Guyana managed to grow its economy and put measures in place to reduce the burden of elevated prices on citizens, while at the same time, prudently managing financial resources,” President Ali pointed out.

This was demonstrated when, at the end of 2022, Guyana’s debt-to-GDP ratio stood at 24.6 per cent. The reduction is significant when compared to a ratio of 38.9 per cent just one year prior.

This, the president said, demonstrates the government’s commitment to prudent fiscal management for the country’s resources.

“If you look at economic growth estimates, the world is estimated to grow at 2.8 per cent in 2023, advanced economies are expected to grow at 1.3 per cent, Latin America and the Caribbean, 1.6 per cent, Caribbean tourism-dependent countries at 3.2 per cent, Caribbean commodity exporters, 18.7 per cent. Guyana is expected to grow at 25.1 per cent,” he outlined.

In 2020, global inflation spiked, driven by supply chain issues, many of which were attributed to the COVID-19 pandemic, volatility of energy prices, and numerous supply shortages around the globe.

It is estimated that global inflation currently stands at 6.1 per cent, while inflation for Latin America and the Caribbean stands at 11.8 per cent. Guyana is estimated to have a 3.8 per cent inflation rate.

Government, upon entering office, took a number of alleviatory actions to reduce the cost of living burden on Guyanese. This included the removal of more than 200 fees and taxes on essential goods, which were implemented by the APNU+AFC administration; restoring subsidies on electricity and water, to the benefit of over 28,000 pensioners, increasing the old-age pension by 61 per cent, and restoring and increasing the ‘Because We Care’ cash grant for students from $10,000 to a current $35,000.

Government has expressed intentions of continuing to increase the cash grant until, paired with the $5,000 uniform voucher, the monetary value being returned to each learner is a minimum of $50,000. Currently, learners receive $40,000 per school year.