IMF supports Guyana’s low carbon plans & efforts to improve business climate

The International Monetary Fund (IMF) has signalled its support for Guyana’s developmental efforts in a statement issued following the 2023 Article IV Mission.

This concluding statement essentially details the preliminary findings of IMF staff after an official visit.

“The government successfully reinstated the Low Carbon Development Strategy (LCDS), which combines utilising the natural resources in a sustainable manner to combat climate change, by maintaining forest coverage and preserving the sequestration rates of Guyana’s forests, and receiving income for these efforts,” the release acknowledged.

The IMF also referenced Guyana’s new carbon credits venture with the Hess Corporation, noting that the income generated will be used for flood management, diversifying the energy matrix and supporting Indigenous communities.

It was also noted that IMF staff support the government’s enhancement of the LCDS which expands the focus of nature conservation to include biodiversity conservation, watershed management, and the ocean economy, both for protection and by receiving payments for these efforts.

Beyond these low carbon development efforts, the IMF statement also expressed support for the government’s plans to improve the local business climate and address labour shortages.

It was acknowledged that Guyana is preparing and implementing several reforms that will facilitate the digitalisation of the country’s economy and boost productivity. These, the IMF said, include the creation of a single-window permit system and digitising identification cards and banking records.

The IMF also noted that Guyana Guyana recorded the highest growth rate in the world last year and now projects that the economy will continue expanding “extremely fast” this year, recording real Gross Domestic Product (GDP) growth of about 38 per cent.