…IMF praises development strategy as opposition outlines alternative vision
BASSETERRE, St. Kitts – GUYANA's economy continues to surge, buoyed by booming oil and gas revenues that have made it one of the fastest-growing economies in the world. According to the International Monetary Fund (IMF), the South American nation is seeing strong gains not just in the oil sector but also in its non-oil economy, supported by large-scale infrastructure investments.
Over the past few years, Guyana’s government has channeled billions into development projects, including road upgrades, school construction, and cash grants aimed at stimulating the economy and improving the lives of its citizens.
SKNVibes News recently posed questions to the IMF about the country’s approach to managing its newfound oil wealth—specifically whether the government is spending too quickly rather than investing for the long term.
In response, the IMF noted:
"The IMF staff commends the authorities for their continued commitment to macroeconomic stability as they implement an ambitious development strategy. This includes using the exceptional oil revenue windfall to finance national development priorities, including investment projects while building substantial savings (over 35 percent of non-oil GDP at the end of 2024) in the Natural Resource Fund.”
Importantly, the Fund highlighted that Guyana’s non-oil economy has been “expanding strongly,” thanks to massive public infrastructure investments that complement the oil boom.
When asked about long-term recommendations for investing national resources, the IMF stated:
"Given Guyana’s development and investment needs, the fiscal policy stance is appropriate. A recent analysis by the IMF staff of Guyana’s investment needs in support of its sustainable development objectives shows that reaching the desired spending levels by 2030 is consistent with Guyana’s current investment path.”
Still, the IMF cautioned that fiscal deficits should gradually narrow over the medium term to support economic sustainability and intergenerational equity.
As the country experiences rapid growth, questions are emerging about whether the workforce can keep up. On the issue of human resources and development, the IMF advised:
"The authorities continue implementing ambitious structural reforms to foster inclusive and resilient growth, including diversifying the economy and reducing gender gaps. Enhancing human capital has been a key focus of such recent efforts aimed at addressing labor shortages and skill mismatches through training and vocational education and enhancing job, education, and healthcare opportunities for women."
However, even as international bodies praise the government’s performance, the domestic political landscape is heating up ahead of the September 1 general election.
The opposition coalition, A Partnership for National Unity (APNU), has criticized the administration’s handling of the economy, particularly regarding the rising cost of living, soaring food prices, and a perceived lack of support for vulnerable populations.
At a recent press conference, APNU leaders claimed that everyday expenses have steadily increased, citing local media findings from the past four years. They argue that the current government has failed to ensure that the benefits of the oil boom reach ordinary citizens.
In response, the coalition has unveiled a four-pillar plan to address the country’s economic and social challenges. Their proposals include: Increasing income levels; Reducing household expenses; Expanding social protection; Improving overall economic conditions
“This is not speculation. These are fully costed, achievable measures aimed at giving real relief to struggling families, while ensuring that Guyana’s oil wealth benefits every citizen—not just the well-connected few,” the coalition said.
Media outlets, including Kaieteur News, found through their research that food prices in Guyana increased between 2020 and 2022. The report analyzed data from the Guyana Marketing Corporation (GMC) and included visits to the country’s two major markets—Stabroek and Bourda—where it was observed that poultry, beef, pork, bora, and several other items experienced significant price hikes.
As Guyana prepares for the polls, the balance between rapid economic growth and equitable wealth distribution remains a central theme of the national conversation. With its oil fortunes still in their early stages, the choices made now could shape the country's future for generations.
