Guyana's Oil Revenues Will Narrow The Fiscal Deficit Despite Expansion In Public Spending

• Fitch Solutions expects surging oil revenues will narrow the Guyanese government’s fiscal deficit over the coming years even as the current administration drastically increases spending. 
• The agency forecast the budget deficit will narrow to 4.7% of GDP in 2021 and 3.2% in 2022, from 5.8% in 2020. 
• While the country’s debt stock will rise from 34.7% of GDP (2020) to finance its deficit, it is expected that the debt will peak at 36.0% of GDP in 2021, and stabilise thereafter as substantial economic growth helps to contain debt accumulation.

(Source: Fitch Solutions)