–country’s economy tripled between 2020 and 2022; inflation rate well below regional average at 3.8 per cent
By Clestine Juan
GUYANA has undergone a remarkable economic transformation, experiencing a threefold increase in its economy since 2020, according to President Dr. Irfaan Ali during a press conference on Wednesday.
The news of Guyana’s nominal gross domestic product (GDP) surging from $1.1 trillion in 2020 to an impressive $3.1 trillion by the end of 2022, has positioned the nation as the fastest-growing economy in the world.
The Head of State said that the momentous growth can largely be attributed to the successful commencement of oil production at the Lisa Unity FPSO, marking a new era of prosperity for the country.
President Ali’s announcement during the press conference highlighted the significance of this milestone in Guyana’s economic trajectory.
“Guyana’s economy has almost tripled since the end of 2020, with our nominal GDP moving from 1.1 trillion in 2020 to 3.1 trillion at the end of 2022. Of course, this is largely owing to the start-up of oil production at the Lisa Unity FPSO. Guyana is now the fastest-growing economy in the world,” the President said.
This extraordinary accomplishment, he said, comes in the face of a challenging global crisis that has inflicted human costs and exposed vulnerabilities in the global food and energy supply.
While global inflation peaked at 8.9 per cent last year and is projected to remain elevated at 6.1 per cent this year, Guyana has emerged as a beacon of economic strength.
President Ali further revealed that Guyana is poised to continue its exceptional growth trajectory in the coming years.
The nation is projected to achieve an average annual growth rate of 25 per cent between 2023 and 2026. Furthermore, Guyana’s non-oil growth is estimated to reach an impressive 7.9 per cent this year, building upon the remarkable 11.5 per cent growth achieved in the previous year.
The President also underscored the government’s commitment to prudent fiscal management, evident in the significant reduction of Guyana’s debt-to-GDP ratio.
By the end of 2022, the President revealed that the ratio stood at 24.6 per cent, demonstrating the government’s responsible handling of the country’s financial resources.
President Ali highlighted this commitment, stating, “At the end of 2022, Guyana’s debt-to-GDP ratio stood at 24.6 per cent, down from 38.9 per cent a year prior. Demonstrating the government’s commitment to prudent fiscal management of the country’s resources.”
When comparing Guyana’s economic performance to global estimates, the nation’s exceptional growth stands out.
While the world is projected to grow at a rate of 2.8 per cent in 2023, advanced economies at 1.3 per cent, and Latin America and the Caribbean at 1.6 per cent, Guyana is expected to surge ahead with an impressive growth rate of 25.1 per cent.
In terms of inflation, Guyana’s economy is anticipated to experience a modest increase, estimated at 3.8 per cent, while Latin America and the Caribbean grapple with an inflation rate of 11.8 per cent.
President Ali took pride in mentioning the measures implemented to mitigate the effects of elevated prices on citizens, highlighting the government’s commitment to reducing the burden of the cost of living.
President Ali stated, “In terms of inflation estimate, the world estimate is at 6.1 per cent. Latin America and the Caribbean at 11.8 per cent, and Guyana is estimated at 3.8 per cent. As I said, I don’t need to remind you of all the measures we put in place to cushion the effect of the cost of living.”
President Ali further emphasised the government’s dedication to fulfilling manifesto promises, particularly in regard to alleviating the financial strain on the population.
He noted the removal of over 200 taxes and fees imposed by the previous government, the restoration of electricity and water subsidies benefitting over 28,000 pensioners, and the increase in old age pensions by 61 per cent. The President further mentioned the reinstatement and enhancement of the ‘Because We Care’ cash grant and the disciplined services one-month tax-free bonus.
President Ali highlighted these achievements, stating, “In our first budget, more than 200 plus taxes and fees imposed by the APNU AFC government were fully removed. The electricity and water subsidies were restored, benefitting over 28,000 pensioners, we increased old age pension by 61per cent, restored and increased the ‘Because We Care’ cash grant, restored the disciplined services one-month tax-free bonus that was previously removed by the APNU+AFC government.”
The staggering economic growth, declining debt-to-GDP ratio, and prudent fiscal management showcase Guyana’s potential as an emerging economic powerhouse.
The Head of State said that the government is committed to safeguarding its citizens’ welfare and prioritising responsible resource management to pave the way for a prosperous future for the nation.
