Editorial

IMF projects 26.6% growth for Guyana in 2024, warns of overheating risk

  • Posted 2 months ago
  • Financial
Development of the Gas-to-Energy (GTE) project.

The International Monetary Fund’s (IMF) Article IV Consultation Report from December 2023 forecasts 26.6% growth in Guyana’s economy for 2024, following a 38.4% projected expansion in 2023.

While the IMF’s report was positive, it warned the economy could become overheated, leading to inflationary pressures and appreciation of the real exchange rate beyond the level implied by a balanced expansion of the economy. The IMF also warned of the risks of highly volatile commodity prices, adverse climate shocks, and governance concerns.

Guyana’s anticipated growth is largely attributed to the oil sector, with oil production expected to surge by 35.1% in 2024. The commencement of the Payara project in November 2023 is a key driver, anticipated to reach its peak output of 220,000 barrels per day (bpd) in early 2024.

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