Above: Amaila Falls
By the Caribbean Journal staff
Despite a worsening international economic climate, Guyana’s economy remains resilient, according to the International Monetary Fund.
Last year, Guyana’s economy recorded a 5 percent increase in GDP, what the IMF called “impressive growth.” The improvement was driven by high commodity prices, foreign direct investment and domestic credit expansion, according to the fund, which completed its yearly review of Guyana’s economy July 27.
“Going forward, infrastructure projects, led by the construction of the hydro power plant at Amaila Falls, along with private mining investments, should sustain growth levels at around 5 percent,” said Therese Turner-Jones, the IMF Mission Chief for Guyana.
Talks with Guyanese authorities focused on how to maintain fiscal and debt sustainability while reducing poverty through what the fund called “inclusive growth” in the context of Guyana’s Low Carbon Development Strategy.
With growth expected to remain “robust” over the medium term, Turner-Jones said, Guyana’s government needs to strengthen policy buffers, particularly given the country’s significant investment requirements.
“While the banking system remains liquid and well-capitalized, continued vigilance is warranted, particularly against the backdrop of rapid credit expansion,” she said.
The IMF said its staff “welcomed” Guyana’s continued decline in nonperforming loans, along with plans for introducing a credit bureau.
The IMF’s Executive Board is expected to discuss Guyana’s Article IV consultation in September.