Guyana’s economy continues to rapidly expand due to gov’t modernisation initiatives – IMF
Guyana’s economy is still expanding rapidly due to the government’s modernisation initiatives including the unmatched expansion of the oil sector.
The startup of a third oil field is increasing oil production, and expeditious public investment measures aimed at building infrastructure for transport, housing, and flood control and developing human capital to support growth in the non-oil economy.
This was highlighted in a recent statement published by a team from the International Monetary Fund (IMF) ‘Guyana Staff Concluding Statement of the 2023 Article IV Mission.’
In 2023, the Gross Domestic Product (GDP) is predicted to increase at the rate of 38 per cent, following the highest-ever real GDP growth of 62.3 per cent in 2022.
The statement said that the prospects for medium-term growth are more favourable than ever.
The agriculture, mining, and quarrying sectors are performing excellently, as the real non-oil GDP increased by 12.3 per cent in the first half of 2023 following a robust 2022.
A significant surplus of the external current account equaling 23.8 per cent of GDP occurred in 2022. With this rate, a similar surplus is anticipated to occur in 2023.
Three other approved fields are scheduled to start producing oil between 2024 and 2027.
A sixth field is anticipated to start producing oil in the first half of 2028.
As the government continues with its ambitious transformational objectives to address developmental demands, a 5.5 per cent growth is expected in the sustained real non-oil GDP expansion.
It also highlighted that further oil discoveries will continue to enhance growth opportunities.
The construction and oil sectors’ excess effects continue to support the expansion of the services and supplies industries.
“CPI inflation reached 7.2 per cent in 2022, in line with other countries in the region, and declined to 1.2 per cent on a y/y basis in July 2023, with the decline in transportation and communication prices,” the statement noted.
A staff team from the IMF, led by Alina Carare, held discussions from August 28 to September 11 for the 2023 Article IV Consultation.
The team met with Vice-President, Bharrat Jagdeo, Senior Minister within the Office of the President with responsibility for Finance, Dr Ashni Singh, Minister of Parliamentary Affairs and Governance, Gail Teixeira, Central Bank Governor, Dr Gobind Ganga, other senior officials, representatives from the private sector, banks, labour unions, and other stakeholders.