(Kaieteur News) – The International Monetary Fund (IMF) has urged Guyana to address labour shortages, expand employment opportunities and strengthen food security as the country seeks to diversify its rapidly growing economy beyond oil.
In its latest Article IV consultation report on Guyana, released on October 8, the Fund said broader diversification efforts should focus on strengthening human capital, expanding employment opportunities, addressing labour shortages and improving food security.
The recommendations come as Guyana’s economy continues to grow rapidly, fuelled by expanding oil production and robust activity in non-oil sectors, including construction, agriculture, mining and manufacturing.
Although the country recorded real economic growth of 19.3 per cent in 2025, the IMF projected that the economy would expand by a further 22.3 per cent in 2026. Non-oil gross domestic product (GDP) grew by 14 per cent last year and is projected to increase by 10.2 per cent this year. Despite this expansion, the IMF said addressing labour shortages and broadening the productive base of the economy remain important to sustaining growth and ensuring that the benefits of development extend beyond the petroleum industry.
The IMF expects non-oil economic growth to average approximately seven per cent over the medium term, underscoring the importance of maintaining productive activity outside the oil sector. Agriculture, in particular, remains a critical component of that effort, given its contribution to domestic food supplies, employment and the wider economy.
According to the IMF inflation, which averaged 3.3 per cent in 2025, had begun rising in 2026, reflecting higher global energy and food prices. It projected average inflation of 4.1 per cent for the year. The Fund also identified labour shortages as an issue that must be addressed if Guyana is to sustain its economic expansion.
As oil production and public and private investment stimulate activity across the economy, competition for workers can place pressure on businesses seeking to recruit and retain skilled and unskilled labour.
Construction, manufacturing and agriculture are among the non-oil activities that the IMF identified as contributing to economic growth. The report calls for stronger human capital, pointing to the importance of developing the skills and capabilities needed to support economic diversification.
However, the IMF did not quantify the number of workers Guyana lacks, identify particular occupations experiencing the most severe shortages or prescribe a specific labour-market programme in the recommendations outlined in its report. The IMF also said Guyana’s economic outlook remains highly favourable, with rising oil production expected to strengthen both its fiscal and external positions. However, the long-term benefits of the petroleum boom will also depend on the country’s ability to develop other productive sectors, expand employment and improve resilience to economic shocks. The Fund identified oil price volatility, potential overheating pressures and climate shocks among the risks to the country’s otherwise favourable outlook. The report also stressed the importance of climate resilience, calling for investment in sea defences, drainage and climate-resilient agriculture.
Source: Kaieteur News
