IDB warns Guyana’s economy vulnerable to external shocks

(Kaieteur News) – The Inter-American Development Bank (IDB) has warned that Guyana’s economy remains vulnerable to external oil shocks, as the country still relies heavily on imported oil to meet its energy demand.

In its Caribbean Economics Quarterly: Volume 16, Issue 2 – Fiscal Resilience, Debt Reduction, and Domestic Resource Mobilization in the Caribbean, the IDB reported that although Guyana has transitioned to become a net oil exporter in 2019, the Guyanese economy can be negatively impacted due to 90% of its energy demand is produced from imported oil.

“The outlook for Guyana is still highly uncertain, given persistent geopolitical tensions that continue to push up international oil prices… electricity and fuel prices continue to be channels through which the Guyanese economy can be negatively impacted,” the Bank said.