IMF: Guyana growth consistent

GUYANA’s economic growth strengthened in 2018, with broad-based expansion across all sectors, according to the International Monetary Fund (IMF) in a release sent to the media at the end of a consultation with Guyana.

The release said real GDP grew by 4.1 per cent while inflation remained low at 1.6 per cent at the end of 2018. Public finances improved last year as the central government deficit came in at 3.5 per cent of GDP, which was lower than what was estimated in the budget.

But the IMF also concluded the current account deficit, the sum of the balance of trade net income from abroad, and net current transfers, rose to 17.5 per cent, caused by foreign investment in the petroleum sector.

As oil production is said to be on schedule, IMF projected a 4.4 per cent economic growth this year.

While the current account deficit is expected to rise, oil production is expected to account for 40 per cent of the GDP within the next four years, which would help meet social and infrastructure needs and assist to reduce public debt.

Directors of the IMF welcomed Guyana’s expansion, but warned that oil production would bring both opportunities and challenges for the country’s economy.

They advised that directors should use the opportunity presented by oil revenues to build an infrastructure that would support economic diversification, tackle skilled labour shortages, and achieve inclusive and equitable growth. They also recommended putting more efforts into developing climate-resilient infrastructure networks.

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