The IMF team conducted an Article IV consultation in Guyana, assessing the country’s economic and financial policies. Minister Gail Teixeira met with the team to discuss various economic issues. The IMF praised Guyana for its effective economic management and recommended measures like establishing a stabilization fund for future shocks.
On December 5, 2023, Minister of Parliamentary Affairs and Governance, Gail Teixeira, met with a team from the International Monetary Fund (IMF) at the Ministry’s office in Queenstown. This meeting was part of the IMF’s annual Article IV consultation process, which evaluates the economic and financial policies of member countries and offers policy guidance while identifying potential risks.
The consultations encompass various topics such as fiscal and financial policies, foreign exchange, monetary policy, and structural reforms. The outcomes contribute to an Article IV report detailing Guyana’s progress, which supports the country’s anti-corruption efforts on an international scale.
In its report from December 2023, the IMF praised the Government of Guyana for its economic management and effective policies aimed at transforming the economy. This assessment followed an IMF mission visit to Guyana in September 2023, highlighting important developments and policy implementations.
The IMF pointed out that the government implemented several measures in response to inflationary pressures, achieving a reduction in the inflation rate during 2023. Additionally, the Fund deemed the government’s expansionary fiscal policies suitable for addressing development needs, complemented by balanced monetary policies.
Notably, despite the economy’s significant growth since the initiation of oil production, the IMF affirmed that the country’s economic fundamentals remain robust and inflationary pressures are absent. Nonetheless, they recommended establishing a precautionary stabilization fund to protect against potential economic shocks in the medium to long term.
The recent consultations between the IMF and the Government of Guyana underline the commitment to sound economic policy and progress. The IMF’s positive assessment reflects the government’s proactive measures in managing inflation and fostering economic growth. The recommendation for a stabilization fund emphasizes the need for preparedness in the face of potential economic challenges.
Original Source: www.stabroeknews.com
