IMF Report Calls Guyana’s Growth Prospects ‘Better Than Ever’

• Guyana’s oil-and-gas sector has already contributed significantly to the economy through increased revenues, consequently, the oil sector GDP is expected to grow more than 100% this year, with roughly 30% average growth continuing for most of the decade according to the IMF.
• However, diversification in other non-oil sectors and government investment in innovative policies will be key elements for driving sustainable growth. The IMF foresees that, over the next five years, Guyana will continue to see significant growth in its non-oil economy, with non-oil sectors accounting for 32% to 40% of total GDP, from 2022 through 2027.
• The report added that non-oil GDP growth is expected to average 5% per year, while inflation is set to ease, thanks to more stable projected international food and fuel prices.
• This year, the country’s sugar and rice industries started to recover after a series of floods hampered those industries. Sugar and rice cultivation, alone, are projected to grow by almost 12% and 25% respectively, according to the government’s projections.
• These improvements will go a long way in encouraging investments in regional agriculture to reduce the regional food-import bill by 2025. Furthermore, this level of investment and development in Guyana is an important indicator of the government proactively working to avoid the resource curse and Dutch Disease early in its oil-producing history.

(Source: Guyana Chronicle)