Guyana’s growth prospects remain bright

IN Guyana, President Dr. Irfaan Ali and his government have been at the forefront of driving economic growth, particularly through the expansion of the oil industry as the International Monetary Fund (IMF) projects continued economic boom for Guyana with 37.2 per cent GDP Growth in 2023.

According to the IMF, the country’s GDP experienced unprecedented growth in 2022, reaching a record high of 62.3 per cent, with the non-oil sector expanding by 11.5 per cent.

The positive outlook continues, with projections of GDP growth at 37.2per cent and non-oil economy growth at 7.9 per cent in 2023, as oil production increases, with two additional floating, production, storage, and offload- ing (FPSO) vessels expected to come online in 2023 and 2025, Guyana’s economic prospects have led the IMF to raise its GDP growth esti - mates for the country from 18.5 per cent to 40.0 per cent for the period of 2022-2026.

Amidst this economic boom, IDB’s Caribbean Economics Quarterly highlights the importance of private sector development in Guyana. The report indicates that there are significant opportunities for private sector growth, driven not only by the positive spillovers from the oil and gas industry but also by increased government spending on infrastructure.

Sectors such as construction, transportation, logistics, hospitality, technology, and business services are poised to benefit, necessitating a business-friendly environment to facilitate this growth.

However, the report also sheds light on the obstacles faced by businesses in Guyana. Based on the 2020 Firm Performance and Gender (IFPG) Survey conducted across 13 Caribbean countries, Guyana’s private sector identified several major challenges to doing business. Electricity, tax rates, skilled labour, collateral requirements for loans, interest rates on loans, and customs and trade regulations were among the top obstacles.

Notably, 64 per cent of firms cited electricity as a major or severe obstacle, while 47 per cent cited customs and trade regulations. In comparison, electricity