This report looks at the state of the Guyana economy at the end of 2018, the last year before the start of oil production. The picture that emerges is one of higher growth than in most other Caribbean countries. The authorities have taken a number of measures to improve the business climate, however, the country’s potential remains stymied by skills shortages and a business environment that constrains investment. In addition, life expectancy, infant mortality, and overall human development indicators compare unfavorably with those of the rest of the Caribbean. With an operating budgetary surplus, low level of debt, and forthcoming oil revenues that will be sustained, there is sufficient fiscal space for higher public investment to improve social conditions. At the same time, structural weaknesses, such as the large size of the public sector and inefficient public enterprises and local governments that absorb a disproportionate amount of resources, have to be addressed. In the financial sector, banks are liquid and broadly profitable, but many face risks, such as low-interest rates on assets, poor loan quality, weak provisioning, legal delays in settling delinquent loans, and relations with related parties. Other risks that require greater attention are those of cyber-crime and climate change.
Published Date: December 2019
Authors: Michael DaCosta, Keith Dublin and Sherwyn Williams
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JAN
2020