The IMF confirms that Guyana’s oil production is set to double this year, and is expected to transform the economy.
Guyana’s commercially recoverable petroleum reserves are is one of the highest levels per capita in the world pegged at 11 billion barrels.
“This could help Guyana build up substantial fiscal and external buffers to absorb shocks while addressing infrastructure gaps and human development needs,” the IMF said in a statement.
the four projects could see Guyana producing 750,000 barrels of oil per day by the end of 2025. The IMF said that between 2023 to 2026, the oil economy could grow by about 30 per annually.
However, they acknowledged that there are risks involved such as the fact that oil prices quickly increase and decrease, as well as a slow global economy, or even rapid increases in local investments.
Despite of these challenges, the IMF says that “continued prudent policies and structural reforms” are crucial.
The IMF further suggested that Guyana’s government moderately increase spending by constraining the annual non-oil overall fiscal balance to not exceed the expected oil transfers.