The International Monetary Fund’s (IMF) latest assessment of Guyana’s economy complemented key points of His Excellency Dr Mohamed Irfaan Ali’s five-year development plan.
Several policies outlined in the five-year development plan of the PPP/C government focus on improving the country’s infrastructure and energy development, diversifying the economy and improving the overall welfare of the Guyanese people.
In its 2026 Article IV Consultation concluded on October 8, the IMF Board reported that Guyana’s economy is expected to maintain a strong performance in the medium term underpinned by the continued robust production of oil and gas and strong non-oil economic activity. The board also projected that public and private investments will remain resilient.
According to the IMF, continued public investment in infrastructure has strengthened the economy and improved social outcomes.
The IMF cited the gas-to-energy project, which is expected to help the country transition from a more expensive and less competitive fuel-based electricity generation to more efficient and cost-competitive power generation.
Investing in improved and stronger energy and infrastructure systems to meet the growing needs of the economy is critical for Guyana’s development.
Economic diversification and the expansion of real GDP are other priorities of the government’s plan. In 2025, real GDP growth surged by 19.3 per cent, and average growth for 2023 and 2024 was approximately 40 per cent, largely due to increases in oil production.
The non-oil economy also experienced strong growth of 14 per cent in 2025, largely driven by construction, with support from agriculture, mining and manufacturing.
According to the IMF, average non-oil growth of about seven per cent is expected in the medium term. This underscores the need to expand economic activity beyond the oil sector.
This is in line with the government’s efforts to develop and encourage other economic activities, including the productive sectors of the economy, and to attract and encourage large-scale private sector investments.
Meanwhile, the IMF also underscored the positive effect of rising oil revenues and investments, and stressed the need to create more jobs and address the current prevailing labour shortage situation.
Human capital and sustainable development
The IMF stated that sustainable development of Guyana hinges on investment in human capital, employment and climate change.
It advised continued investment in climate-resilient sea defences and drainage to protect the country’s most vulnerable populations and increase Guyana’s climate change resilience.
The report also stressed the importance of prudent fiscal management, especially during the implementation of the government’s major development projects.
Strong oil revenues reduced Guyana’s general fiscal deficit to 5.5 per cent of GDP in 2025, despite significant public investments.
The IMF stated that the Natural Resource Fund is serving Guyana well and providing a cushion, while Guyana maintains one of the lowest debt-to-GDP ratios in the Western Hemisphere.