While it noted that the economy has tripled in size since the start of oil production, fundamentals remain sound and there are no signs of inflationary pressures, the IMF has advised the government to establish a precautionary stabilization fund in the medium to long term as a hedge against shocks.
The recommendation contained in one of the annexes to its recent country report following its Article IV Consultation with Guyana earlier this year will be seen as a criticism of the manner in which the current Natural Resource Fund (NRF) has been structured.
This recommendation came just days after the Inter-American Development Bank’s 2023 to 2026 country strategy for Guyana raised doubts about the frontloading of proceeds from the NRF.