President Ali says Budget 2026 built on strong economic gains, improved global rankings

Speaking from overseas, President Dr Mohamed Irfaan Ali on Thursday said Guyana’s Budget 2026 is grounded in strong economic fundamentals, pointing to improved international rankings, rapid economic growth, and increased resilience against global shocks over the past five years.

In the fourth instalment of his commentary on the national budget, the president highlighted Guyana’s performance on the Fragile States Index (FSI) and the Index of Economic Freedom (IEF), arguing that international benchmarks show measurable progress in security, governance, economic stability, and investor confidence since 2019.

“What this indicates is that we have improved as a country since 2019 in managing internal and external security pressures without tipping into instability,” he said, adding that strengthened institutions now allow Guyana to better withstand external shocks.

The president also pointed to a reduction in “factionalised elites,” with Guyana’s score improving from 11 in 2019 to 5 in 2025, indicating reduced political instability and greater social cohesion. Economic performance improved from a score of 10 to approximately 5 over the same period, while economic inequality declined from 9 to about 4.5, suggesting more inclusive growth.

He said one of the most notable improvements was in human flight and brain drain, which fell from a score of 16 in 2019 to about 7 in 2025. The president attributed this trend to increased confidence in the economy, reduced capital flight, and greater opportunities for skilled workers at home.

Turning to the Index of Economic Freedom, President Ali said Guyana recorded major gains in government integrity, tax burden, and the overall investment climate. He reported that Guyana’s government integrity score rose from 20 in 2019 to nearly 80 in 2025.

“The increase in government integrity indicates that there is better transparency, there is better openness, there is a better procurement system,” the president said.

On taxation, Guyana’s tax burden score increased from 50 to 140, which he explained signals a more moderate, predictable, and investor-friendly tax system. He added that increased government spending has been accompanied by improved efficiency and better value for money.

The president also emphasised Guyana’s economic growth performance, noting that the economy expanded by 19.3 per cent in 2025, compared with a global average of 3.3 per cent. He said this made Guyana the second-fastest-growing economy in the world, outpacing growth in advanced economies and in Latin America and the Caribbean.

He reported that non-oil GDP grew by 14.3 per cent, driven by strong expansion across traditional and non-traditional sectors, including agriculture (11.5 per cent), bauxite (53.4 per cent), gold (11.6 per cent), manufacturing (20 per cent), construction (31 per cent), and professional and technical services (35.7 per cent).

In the financial sector, President Ali said market securities increased by nearly 79 per cent between 2020 and 2025, while international reserves rose by approximately US$668 million. He added that inflation remains among the lowest in the region and that the public debt-to-GDP ratio declined from 53 per cent in 2020 to 30 per cent in 2025.

The head of state also highlighted improved banking sector indicators, including a capital adequacy ratio of 16.36 per cent, more than double the prudential benchmark, and a reduction in non-performing loans from 11.1 per cent in 2019 to 1.42 per cent in 2025.

He said these indicators demonstrate that Guyana’s economy is more resilient, better diversified, and increasingly “shock-proofed,” providing the fiscal space needed to deliver on commitments outlined in Budget 2026.

“When you look at these indicators, it tells you a story that we have a solid and robust financial framework with the fundamentals in place to strengthen our economy, safeguard our economy and shock-proof our economy,” he said.

The president said this data shows Budget 2026 was crafted within a stable macroeconomic environment and is designed to continue putting the Guyanese people first.