The In­ter-Amer­i­can De­vel­op­ment Bank (IDB) says the out­look for Guyana is still high­ly un­cer­tain, giv­en per­sis­tent geopo­lit­i­cal ten­sions that con­tin­ue to push up in­ter­na­tion­al oil prices.

“Al­though Guyana tran­si­tioned to be­come a net oil ex­porter in 2019, the coun­try still pro­duces 90 per cent of its en­er­gy from im­port­ed oil. As a re­sult, elec­tric­i­ty and fu­el prices con­tin­ue to be chan­nels through which the Guyanese econ­o­my can be neg­a­tive­ly im­pact­ed,” the IDB said.

“More­over, as Guyana is now an oil pro­duc­er, oil shocks can lead to Dutch dis­ease risks, spurred on by an in­flux of oil rev­enues and ex­ces­sive gov­ern­ment spend­ing. With­in this con­text, the IMF fore­casts that Guyana’s gross do­mes­tic prod­uct) GDP growth ex­pan­sion in 2026 will be small­er than orig­i­nal­ly pre­dict­ed but with man­age­able macro-fis­cal risks.”