While contending that Guyana’s medium-term prospects are more favourable than ever before, with increasing oil production having the potential to transform its economy, an International Monetary Fund (IMF) mission has cautioned over the pace of public investment.
“Staff urge caution in determining the pace of ramping up public investment. While pressing development challenges still face the country, a large surge in public investment could add inflationary pressure, affect competitiveness of the non-oil economy, lead to an eventual loss in FX reserves, and might not be sustainable over the medium-term,” the concluding statement of the Article IV mission said.