Minister of Parliamentary Affairs and Governance, Gail Teixeira yesterday met with an International Monetary Fund’s (IMF) team at the Ministry’s Queenstown office, as part of the Fund’s annual Article IV process.
A release from the ministry noted that the IMF monitors member countries’ economic and financial policies and provides policy advice. The IMF also identifies potential risks and recommends policy adjustments.
The consultations cover a range of issues, including fiscal policy, financial policies, foreign exchange, monetary policy, and structural policies.
The release added that the Article IV process, which results in the publication of a report on the State’s progress, is part of Guyana’s anti-corruption architecture at the international level.
In its December 2023 Article IV Consultation report, the IMF had commended the Government of Guyana for economic management, including the implementation of policies and initiatives geared at transforming Guyana’s economy. The findings were published following an official IMF mission visit to Guyana in September of that year.
According to a release, in its findings, the IMF had noted that in relation to inflationary pressures, government had introduced a suite of measures in 2022 and 2023, which contributed to a decline in the inflation rate in 2023. The Fund had also reported that government’s current expansionary fiscal policy stance is appropriate, given the country’s development needs and is appropriately balanced by monetary policy.
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 had in December of 2023 advised the government to establish a precautionary stabilization fund in the medium to long term as a hedge against shocks.
