With the Rapid Pace Of Oil Production, IMF Urges Guyana To Address Institutional Weaknesses, Diversify Economy

• The International Monetary Fund (IMF) predicts that with the rapid pace of oil production in the Stabroek Block, Guyana is expected to grow by 57.8% in 2022. In light of the extent to which oil accounts for this, the financial institution urged that there be greater efforts towards addressing institutional weaknesses and the diversification of the economy.
• The IMF Directors noted that the country’s oil production has increased significantly and Gross Domestic Product (GDP) for oil is expected to grow over 100% in 2022 (with just two ships in operation), and about 30% on average per year during 2023-26.
• It was also noted that Guyana’s commercially recoverable petroleum reserves are expected to reach over 11Bn barrels, one of the highest levels per capita in the world. That said, the magnitude of the oil wealth could help Guyana build up substantial fiscal and external buffers to absorb shocks while addressing infrastructure gaps and human development needs.
• Nevertheless, considering the potential challenges related to volatility in global oil prices and effective management of natural resources, the Agency highlighted the need for continued prudent policies and structural reforms to avoid the build-up of macroeconomic vulnerabilities.

(Source: Kaieteur News)