DEMERARA WAVES – by: Denis Chabrol – Friday, 3 June 2022
The International Monetary Fund (IMF) is warning Guyana against spending rapidly on public investment projects because this can have severe economic consequences.
“Staff urges caution in determining the pace of ramping up public investment. While pressing development challenges still face the country, a large surge in public investment could add inflationary pressure, affect competitiveness of the non-oil economy, lead to an eventual loss in FX (foreign exchange) reserves, and might not be sustainable over the medium-term,” the IMF’s staff said in their concluding statement. Continue reading
