Following a 10-day mission here, a team from the International Monetary Fund (IMF) expects the growth of the Guyana economy to continue on a steady path.
Therese Turner-Jones, chief of the International Monetary Fund (IMF) mission to Guyana, in a statement released in Georgetown today said that its yearly review showed that despite external and domestic shocks, Guyana’s economy showed resilience and registered its fifth consecutive year of “robust growth”. The statement added that real GDP growth is projected at just under 4% which is above last year’s figure. This was underpinned by increased activity in the gold and services sector. The statement also mentioned an uptick in sugar though figures on the ground do not support this.
Even in the backdrop of risk including concerns about the sugar sector, the IMF mission said the team expected “growth to continue on a steady path, supported by expansion in the mining and construction sectors.” It also noted that despite a small increase in food prices inflation remains relatively low.
Talks between the two sides focused on strategies to preserve fiscal and debt sustainability over the medium term in the context of the Low Carbon Development Strategy and to further boost economic flexibility and resilience to shocks, while continuing to reduce poverty.
“Fiscal consolidation remains a priority, consistent with the authorities’ commitment of maintaining a sustainable medium term debt path. Staff recommended strengthening ongoing efforts to improve the fiscal outturn, given existing challenges in the sugar sector. Maintaining the strong fiscal stance would also help to support external sector stability. Staff welcomed the continued improvements in public financial management and tax administration, especially with respect to compliance and risk management. It welcomed the increase in the gross foreign reserves position, to about five months of imports at present”, the statement said.
It added that while the banking system remains liquid and well capitalized, continued vigilance is necessary, particularly in the backdrop of the ongoing housing boom. It said that recent enhancements in financial sector supervision and regulation, including new guidelines on risk management, are welcome.
The mission also commended the dissemination of financial sector indicators, which now appear on the Bank of Guyana’s website.
