GUYANA proudly holds the position of having the lowest public debt levels in the region, as reported by the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) in its “Fiscal Panorama of Latin America and the Caribbean 2025” report.
The findings reveal that Guyana’s public debt ratio has been on a downward trajectory since 2022, thanks to an impressive GDP growth rate exceeding 40 percent in real terms in 2024, largely fueled by the burgeoning offshore oil industry.
Once burdened by debt, Guyana has undergone a remarkable transformation, transitioning to a nation with a steady decline in public debt, as noted in previous ECLAC reports.
Significantly, the debt-to-GDP ratio dropped by 16 percentage points from 2021 to 2022, driven by a 62.3 percent surge in economic output following the initiation of oil and gas production.
Under the governance of the People’s Progressive Party/Civic (PPP/C), strategic investments have been made to ensure financial sustainability. By the end of 2024, the Public and Publicly Guaranteed (PPG) debt-to-GDP ratio reduced to 24.3 percent from 47.4 percent at the end of 2020.
Senior Minister of Finance Dr. Ashni Singh praised the government’s commitment to responsible debt management, emphasizing the importance of sustainable development financing. At the end of 2024, Guyana’s total PPG debt stood at US$5.993 billion, attributed to inflows from both external and domestic creditors.
In stark contrast to the past, when the nation faced overwhelming debt servicing issues, Guyana now demonstrates enhanced capacity to manage public debt sustainably, without necessitating fiscal adjustments.
Source: guyanachronicle.com
