IMF Validates Government Economic Policies

Mar 12, 2025 Letters

Dear Editor

Guyana’s economic outlook remains strong through 2025, according to the International Monetary Fund (IMF), as reported by Stabroek News (03/08/2025) and the IMF website. Based on consultations with key economic stakeholders, including government officials, the private sector, and labour unions, the IMF’s assessment highlights significant achievements and promising trends.

The IMF’s report emphasizes two key points: the diversification of economic growth beyond the oil sector and the overall strength of Guyana’s economic performance. The IMF noted that Guyana experienced “the highest real GDP growth rate in the world, at a recorded average of 47 percent in 2022–24,” driven by expanding oil production, robust non-oil output, and substantial public infrastructure investment. Notably, the non-oil economy demonstrates broad-based growth, particularly in construction and services, validating the government’s focus on diversification.

These positive outcomes reflect the impact of strategic government investments. Extensive infrastructure development initiatives, funded by oil revenues, improve citizens’ quality of life. Aligned with President Ali’s vision, the government prioritizes sustainable job creation, poverty reduction, and inclusive growth through education, healthcare, and infrastructure investments. The increased budget allocation for 2025 underscores this commitment to national development and improved living standards. Infrastructure development encompasses vital systems, including transportation, energy, water, telecommunications, education, healthcare, and government services, all supported by modern financial systems that facilitate efficient trade.

Regarding inflation, a key concern for Guyanese citizens, the IMF projects a moderate increase to around 4 percent by the end of 2025, from approximately 3 percent at the end of 2024. However, the IMF emphasizes that “fundamentals remain strong and there are no signs of inflationary pressures or overheating as of yet… since there remains slack in the economy.” This assessment validates the effectiveness of the government’s anti-inflationary policies, including cash grants and social transfer programs. The IMF further notes that these policies have “increased disposable income and reduced the poverty rate,” suggesting that targeted transfers, integrated into a medium-term fiscal framework, could further promote inclusive growth and advance Guyana’s progress toward its sustainable development goals.

The IMF’s assessment strongly endorses the Guyanese government’s economic policies and their positive impact on households. With the “highest real GDP growth in the world in 2022,” Guyana’s economic future appears bright.

Respectfully,

Dr. Tilokie Arnold Depoo, Economist

(IMF Validates Government Economic Policies)

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development initiatives, GDP growth, government officials, infrastructure investments, International Monetary Fund

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