GEORGETOWN, Guyana, CMC – The International Monetary Fund (IMF), in its new Regional Economic Outlook report for the Western Hemisphere, says Guyana will continue to experience robust economic expansion even as other countries in Latin America and the Caribbean face less favorable growth conditions and brace for a slowdown in their productive sectors.
The report noted that Guyana should record a 38.4% real Gross Domestic Product (GDP) growth rate this year, and next year, the country’s growth should continue with an expansion of 26.6% expected.
The debt taken on by the government is projected to be about 29.9% of GDP, while a 7.2% inflation rate is also expected.
This debt refers to all external financial obligations, including loans taken, while inflation is generally the rate of price increases over time.
Guyana is the only country expecting double-digit growth. St. Vincent and the Grenadines (6.2%) and Panama (6.0%) have the highest growth rates.
The entire Latin America and Caribbean region expects a 2.3% growth rate this year. In contrast, growth among the non-tourism-dependent countries in the Caribbean – Haiti, Guyana, Suriname, and Trinidad and Tobago -should be 13.6% this year.
The IMF also projects a 1.6% growth rate for South America and a 3.8% growth rate for the bloc of countries encompassing Central America, Panama, and the Dominican Republic.
In Guyana’s case, offshore oil finds contribute to the expected high economic growth rates.
“… growth in the Caribbean commodity exporters will slow down in 2023 and further in 2024 as these countries face less favorable external conditions, although Guyana will continue to grow at a robust pace following the discovery of sizable oil reserves,” the IMF said.
The slowdown in other countries has been attributed to a weaker external environment, severe weather conditions, and a softening demand for tourism services.
In September, President Dr. Irfaan Ali announced that Guyana recorded a 59.5% economic growth rate at the half-year mark, with the non-oil economy growing by 12.3%.
Based on the mid-year report, the government projects that real GDP growth in 2023 will be 28.2%, while non-oil growth alone will be 9.3%.
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