WASHINGTON – The International Monetary Fund (IMF) has projected 4.4 per cent economic growth for Guyana this year, stating that the medium-term prospects are very favourable for the Caribbean Community (CARICOM) member state as oil production is on schedule to begin in early 2020.
After concluding Article IV Consultation with Guyanese authorities, the Washington-based financial institution said the broad based expansion extends across all major sectors.
The current account deficit is estimated to rise to 22.7 per cent of gross domestic product (GDP) “on the back of higher imports related to oil production, which will be largely financed by FDI (foreign direct investment) in the petroleum sector”, the IMF said.
“The commencement of oil production in 2020 will substantially improve Guyana’s medium- and long-term outlook,” it said, adding that the oil sector is projected to grow rapidly, accounting for around 40 per cent of GDP by 2024 and supporting additional fiscal spending annually of 6.5 per cent of non-oil GDP on average over the medium term, “which will help meet critical social and infrastructure needs.”
The IMF said public debt and the external current account deficit are projected to decline steadily following the onset of oil production. (CMC)