World Bank Economist Urges Guyana to Strengthen Institutions for Managing Oil Wealth Amidst Favourable Growth Outlook

The growth prospects for Guyana in the upcoming years appear to be promising, primarily attributed to the country's emerging oil and gas industry. However, William Maloney, an economist at the World Bank, advised the nation to continue strengthening the institutions responsible for managing oil resources to ensure sustained growth. The World Bank anticipates a significant increase in its Gross Domestic Product (GDP), with a growth rate of 25.2% projected for this year. Moreover, in 2024, the growth rate is expected to rise by 21.2%, while in 2025, the GDP is estimated to expand by 28.2%. Real GDP, a measure adjusted for inflation, represents the total value of goods and services produced by an economy in a specific year, reflecting Guyana's economic output after accounting for changes in prices. In contrast to the global projection of a 2.1% growth rate, the Latin America and Caribbean region is expected to experience a growth rate of 1.4% this year, according to a new report titled "The Promise of Integration: Opportunities in a Changing Global Economy" by the World Bank. William Maloney, an economist at the World Bank, presented the report, noting the adverse impact of global challenges such as the COVID-19 pandemic, the Ukraine/Russia crisis fallout, and rising prices and interest rates on the Caribbean region, which suffered considerably. Despite the difficulties, Maloney observed that several countries in the region have effectively managed their debt and are now demonstrating signs of recovery. With regard to Guyana, he recognized that the country's high growth rates are closely tied to its newly discovered natural resource - oil. However, he cautioned that the key challenge lies in developing an institutional framework to ensure that these resources are distributed equitably. Maloney added that the World Bank is working with Guyanese authorities to strengthen local institutions and enhance the management of the country's resources.

Source(Image: Michael Charles , News: Newsroom)

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6 Apr 2023 17:45 | by anaraine

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