External debt below 50% of GDP- Finance Minister

Jun 30, 2018 News

Finance Minister, Winston Jordan

inister of Finance, Winston Jordan, recently assured that the economy remains sound. In this regard, he noted that the country’s external debt levels are still below 50% of the country’s Gross Domestic Product (GDP).
Jordan noted that the most recent figures indicate a debt level of 45.2% in 2017 and 46.4% in 2016. He said that this is down from 48.6% in 2015.
Jordan said, “How does this compare to the region? Sadly, some of our fellow Caricom countries are not in good financial shape. Barbados had a debt to GDP ratio of 145% in 2016, Jamaica 120%, Antigua 93% and Grenada 89%.
“These debt levels are dangerously high. In the case of Barbados, these meant severe austerity measures by the government and a move to the International Monetary Fund for assistance.”
For Guyana, the economist said that the current level is more than manageable. He said, too, that debt should be viewed in relative terms and not absolute. Jordan also said that as the economy continues to grow, it can take on more debt.
“So just as a household income may rise, Guyana’s GDP will rise too –this year by 3.6%. And with First Oil only months away, the International Monetary Fund (IMF) forecasts Guyana’s GDP to increase by 38.5 percent in 2021 with a significant increase in official reserves and a gradual decline of the public debt-to-GDP ratio.”

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