IMF lauds Guyana’s “very good management” of economy

– expects “very fast growth rates” to continue

The International Monetary Fund (IMF) has hailed Guyana for the good management of its economy, which it anticipates will continue to grow in the double digits, fuelled by the country’s burgeoning oil and gas sector.
The IMF is currently holding its 2025 Spring Meetings in Washington DC from April 21 to 26.
During a press briefing on Friday on the “Regional Economic Outlook for the Western Hemisphere,” the panel was asked about the role of Guyana and Suriname, as major oil producers, in ensuring the Caribbean’s economic growth and stability.

According to the IMF’s Director of Western Hemisphere Department, Rodrigo Valdés, these two neighbouring countries are important for the region especially with Guyana already experiencing real Gross Domestic Product (GDP) growths in the double digits.
In the same breath, however, the IMF official underscored the importance of prudent economic management.
“Suriname and Guyana are two countries that are living through important discoveries of oil and that is a very challenging situation. There are lessons in history that these [oil] discoveries, or more generally – natural resources, can be a blessing or can be a curse, depending on how you manage that.”
“We’re seeing a very good management in Guyana; now Suriname has to establish a framework for this to work well for them,” Valdés stated.
Similar sentiments were also echoed by the IMF’s Deputy Director of the Western Hemisphere Department, Ana Corbacho, who recognised that Guyana has been the fastest growing economy, not only in the Caribbean but in the whole world, with average growth rates of 47 per cent between 2022 and 2024 – a pattern she anticipates will continue.

“We expect Guyana to continue to have very fast growth rates in an environment of macroeconomic stability,” she noted.
According to Corbacho, maintaining this macroeconomic stability is very critical in the current uncertain global environment. She further stressed the need for the country to continue strengthening it resilience to shocks, includes shocks from oil prices.
Moreover, the IMF official outlined the importance of continuing to build very strong institutions so that the benefits of the oil wealth can be shared across generations in Guyana.
“Currently, oil revenues are already helping Guyana address very significant development needs,” Corbacho noted, adding “The Sovereign Wealth Fund has about 13 per cent of GDP in buffers, and that this is going to be very crucial to mitigate the impact of any global shocks. And over time, we have emphasised the need to gradually close fiscal deficits, again to preserve that wealth for the future.”
In its April 2025 Outlook, the IMF projected that Guyana’s Real GDP will expand by some 10.3 per cent this year with non-oil GDP projected to increase by about 13 per cent – the highest for in the region. Similarly, it also predicted a 23 per cent GDP growth next year.Only last month, a staff team from the IMF completed their 2025 Article IV Consultation with Guyana. The consultation, held both virtually and in-person in Georgetown from February 24 to March 7, 2025, involved discussions with high-level Government officials as well as stakeholders from the private sector, labour unions, and banks.
In a subsequent statement, the IMF team commended Guyana’s impressive economic progress and transformation over the last few years, driven primarily by rapidly expanding oil production, robust non-oil output, and significant public infrastructure investments.
Despite its impressive growth, however, the IMF has warned that potential risks to the economic outlook remain, including overheating pressures that could push inflation higher and cause the real exchange rate to appreciate excessively.
The IMF team had highlighted the potential upside of additional oil discoveries and investments aimed at strengthening energy resilience, which could further support Guyana’s economic trajectory.
However, challenges such as commodity price volatility and climate-related shocks could pose challenges to future growth.
On the other hand, the IMF team praised the Guyana Government’s fiscal policies, particularly its focus on ensuring macroeconomic stability and fiscal sustainability. The budget deficit, which stood at 7.3 per cent of GDP in 2024, is projected to decrease to just below 5 per cent in 2025, supported by increased oil revenues.
The team also emphasised the importance of closing the fiscal deficit by 2031, coupled with measures to enhance public financial management and improve the efficiency of public spending.
Monetary policy was also deemed appropriately tight, with the IMF urging continued vigilance to prevent inflationary pressures. The team recommended strengthening the monetary policy toolkit and improving liquidity management in the banking system to maintain price stability. It also suggested a reassessment of the exchange rate framework in the medium term, to ensure continued macroeconomic resilience as Guyana’s economy continues to evolve.
In terms of financial stability, the IMF called for improvements to Guyana’s macroprudential framework to better respond to potential shocks.
Additionally, the team welcomed ongoing efforts to strengthen anti-money laundering (AML), counter-financing of terrorism (CFT), and anti-corruption measures, noting significant progress in these areas.
Guyana’s commitment to sustainable development was also highlighted, particularly its pioneering work in climate policy. The country is advancing its Low Carbon Development Strategy (LCDS), focusing on forest conservation and biodiversity. The IMF also supported Guyana’s efforts to diversify its energy sources, including the Gas-to-Energy (GtE) Project, which is expected to bolster electricity provision and contribute to a cleaner energy matrix.
The IMF’s statement noted recognition of Guyana’s strides toward inclusive growth and economic diversification. With a strong emphasis on upgrading labour skills, addressing labour shortages, and increasing women’s participation in the workforce, it said the Government is positioning the country for sustained economic expansion.