Senior Finance Minister Dr. Ashni Singh has welcomed the International Monetary Fund’s (IMF) latest review, which offers a highly favorable assessment of Guyana’s economic performance and policy direction. In its 2025 Article IV Consultation, the IMF praised Guyana’s rapid transformation, driven by expanding oil production and strong non-oil sector growth. The country has recorded the highest real GDP growth rate globally since 2022, averaging 47% annually. In 2024 alone, oil GDP surged by nearly 58%, while non-oil GDP grew by over 13%, reflecting successful efforts to diversify the economy.

Inflation remained moderate at 2.9% in 2024, slightly up from the previous year, due to global food price pressures and domestic flooding. The IMF acknowledged the government’s expansionary fiscal stance, noting that the fiscal deficit widened to 7.3% of GDP, largely due to increased capital investment aimed at meeting development needs. Despite this, Guyana’s external position remains strong, with the current account surplus more than doubling to 24.5% of GDP. The country’s international reserves exceeded US$1 billion, and the Natural Resource Fund (NRF) grew to US$3.1 billion, equivalent to over 12.5% of GDP.

Looking ahead, the IMF projects that Guyana’s economy will continue to grow at an average annual rate of 14% over the next five years, with non-oil GDP expected to grow by around 6.75% annually. Inflation is forecast to rise moderately to 4% in 2025, while fiscal and external balances are expected to gradually narrow. The IMF emphasized that continued oil production, infrastructure development, and productivity gains will support long-term growth and economic resilience.

The IMF Executive Board commended the government’s commitment to balancing development with macroeconomic stability. Directors supported the current fiscal approach and welcomed plans to reduce deficits over time. They encouraged the development of a medium-term fiscal framework with clear targets and regular evaluations of development spending. The Board also noted the appropriateness of the current monetary policy and suggested further tightening if inflation risks increase. Additionally, they recommended exploring a more flexible exchange rate regime in the future as the economy matures.

The IMF also praised Guyana’s efforts to strengthen financial oversight, improve governance, and enhance transparency, particularly in areas such as anti-corruption and anti-money laundering. The country’s progress in fostering inclusive growth, improving the business climate, and building climate and energy resilience was also recognized. The next IMF consultation with Guyana is scheduled for 2026.

Source: (Guyana Chronicle)

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