The International Monetary Fund (IMF) has commended the Government of Guyana’s strategy of leveraging oil revenues to fund large-scale development projects, many of which are tied to its Low Carbon Development Strategy (LCDS) 2030. Even as it applauds local authorities in this respect, it was keen too note that given Guyana’s placement on development indicators, it has a strong case for increasing spending in the areas of education, health, infrastructure, energy, and water and sanitation through 2030.
Beyond 2030, the IMF expects Guyana’s spending patterns to shift toward more stable trajectories, based on the established rules of its Natural Resources Fund (NRF).
Since the start of oil production in December 2019, Guyana’s economy has experienced rapid expansion leading to the country being registered as having the highest growth rate in the world from 2022 to 2024, with average annual growth of 47%.
The IMF recounted that in 2024 alone, real Gross Domestic Product (GDP) growth surged to 43.5% up from nearly 34 percent in 2023, as oil production more than doubled to 660,000 barrels per day (bpd). Oil GDP jumped by 58%, while the non-oil economy grew by 13%, driven largely by construction activity and government infrastructure projects. The IMF highlighted that the government has made considerable investments to ensure improved standard of living while also addressing poverty.
Looking ahead, the IMF said the economic outlook remains highly favorable for the country. It said, “The economy is expected to grow above 14% on average over the next five years, driven by robust oil production and strong non-oil sector growth…”
