IMF report confirms sound management and strong performance of Guyanese economy – Ashni Singh

Finance Minister Dr Ashni Singh stated that the recently released 2025 Article IV report by the International Monetary Fund (IMF) on the Guyanese economy provides strong confirmation of the soundness and responsibility of the government’s stewardship of the economy.

In an invited comment, he said it also highlights the extraordinarily strong performance of the economy as a result of the favourable policy framework that the government has put in place.

In the report issued as the IMF Executive Board concluded the 2025 Article IV Consultation with Guyana, the body acknowledged that Guyana’s economic transformation is advancing strongly and broadening in scale. It added that rapidly expanding oil production, strong non-oil output, and large-scale public infrastructure investment supported the highest real GDP growth rate in the world, averaging 47 percent per year since 2022. The country’s economic outlook remains favourable, the IMF posited too.

That’s not all. The IMF acknowledged that there are some risks to the outlook but noted that these are “broadly balanced.”

Even so, the IMF said downside risks stem from overheating pressures, which, if not contained, would lead to higher inflation and a real exchange rate appreciation beyond the level consistent with a balanced expansion of the economy. Commodity price volatility in a highly uncertain global environment, including from trade policy and climate shocks, could also adversely affect inflation and alter the macroeconomic outlook.

The IMF report has some policy recommendations for Guyana.

“Maintaining macroeconomic stability remains the overarching policy priority given the sheer size of the expected oil revenue inflows and fiscal spending.

“Enhancing the monitoring of macrofinancial developments and proactively responding through tighter fiscal, monetary, and macroprudential policies, as needed, will be essential to ensure that the economy avoids overheating and the adverse effects commonly associated with “Dutch disease,” the IMF said.

So the IMF recommended that an appropriate fiscal policy remains in place. It also noted that to continue ensuring financial sector stability, efforts should focus on further improving systemic risk monitoring and strengthening financial sector supervision.

“Efforts to strengthen governance, anti-corruption, and AML/CFT frameworks, and transparency in extractive industries in line with international standards and recommendations should continue.

“Critical data gaps should be addressed to support effective policy making,” the IMF noted too.

Still, the body commended the authorities’ commitment to balancing development needs with prudent policies to entrench macroeconomic and fiscal stability.