President Ali says global indices show Guyana is stronger, more resilient heading into Budget 2026

President Irfaan Ali on Thursday pointed to international economic and governance indices as evidence that Guyana has become more stable, resilient and competitive over the past five years, as he continued his public engagement on the framing of Budget 2026.

In his address, the Head of State said it was important for Guyana to benchmark itself “against world economic indicators and against other countries and regions” to properly assess how the country is performing within the global economy.

One of the key measurements referenced was the Fragile States Index, which assesses a country’s vulnerability to instability, conflict and institutional breakdown, including how economies withstand external shocks.

According to the President, Guyana has recorded sharp improvements across several of the index’s core indicators between 2019 and 2025.

“We were at 13 points on the graph in 2019. Today, we are at 6,” Ali said, referring to the security apparatus indicator. “What this indicates is that we have improved as a country since 2019 in managing internal and external security pressures without tipping into instability.”

He attributed the improvement to sustained investments in security and defence, legislative upgrades, and enhanced training for members of the disciplined services, noting that Guyana now records “the lowest crime rate within the CELAC region.”

On the issue of factionalised elites, which measures political divisions and power struggles, Ali said Guyana also saw marked progress, moving from about 11 points in 2019 to 5 in 2025.

“This decline again shows an economy and a country that is more equitable,” he said, emphasising that the figures are drawn from international assessments.

The President said similar gains were recorded in economic stability, with the economy indicator improving from 10 in 2019 to approximately 5 in 2025, signalling greater resilience and capacity to absorb external shocks.

Economic inequality also narrowed, according to the data cited.

“In 2019, we were 9. In 2025, we are just about 4.5,” Ali said. “What the decline in economic inequality means is that there is growth, and that growth is fairer and more equitable, benefiting all irrespective of race, ethnicity, or religion.”

He further pointed to a significant reduction in human flight and brain drain, noting that Guyana moved from a score of 16 in 2019 to about 7 in 2025.

“That is less persons migrating, less qualified persons migrating, less skilled workers migrating,” the President said, adding that the figures also reflect reduced capital flight and improved investor confidence.

Ali also referenced improvements under the Index of Economic Freedom, which measures the ease of producing, trading, investing and building wealth under a country’s legal and institutional framework.

“Our score has improved from 20 to almost 80,” he said, pointing to gains in government integrity, transparency, procurement systems and judicial effectiveness.

On taxation, the President said Guyana’s tax burden improved significantly, moving from about 50 points in 2019 to 140 points in 2025.

“The increase in this point means that there is less tax burden. Our taxes are more moderate, broad-based, and predictable,” he said, adding that predictability in taxation has been key to attracting investment.

Turning to growth performance, Ali said Guyana continued to outperform global and regional averages in 2025, recording economic growth of 19.3 per cent, compared to a global average of about 3.3 per cent.

“The average growth rate in advanced economy was 1.7 per cent, and in developing economy was about 4.4 per cent,” he noted, adding that growth in Latin America and the Caribbean stood at 2.4 per cent.

He said Guyana’s performance was driven not only by oil, but by strong expansion in the non-oil economy, which grew by 14.3 per cent.

The President highlighted growth across multiple sectors, including agriculture (11.5 per cent), bauxite (53.4 per cent), gold (11.6 per cent), manufacturing (20 per cent), construction (31 per cent), financial services (16.9 per cent), and professional and scientific technical services (35.7 per cent).

“This speaks to structural resilience. This speaks to structural transformation in our economy,” Ali said.

He also outlined improvements in the financial system, noting that market securities increased from $94 billion in 2020 to $168 billion in 2025, while international reserves rose by almost US$668 million over the same period.

“These indicators tell you a story that we have a solid and robust financial framework with the fundamentals in place to strengthen our economy, safeguard our economy, and shock-proof our economy,” he said.

Ali further noted that inflation remains among the lowest in the region, while Guyana’s public and publicly guaranteed debt-to-GDP ratio declined from 53 per cent in 2020 to 30 per cent in 2025.

“The effective tax rate in 2020 was 14.5 per cent. Today it is 6.4 per cent,” he said, adding that Guyanese are now paying “almost 8.1 per cent less tax on every dollar earned when compared to 2020.”

In closing, the President said the data provides important context for the policies and priorities shaping Budget 2026.

“I wanted to touch on a few of these indicators so that you will have a full understanding as to the performance of the economy, the performance of our policies, and how the environment in which Budget 2026 is crafted,” Ali said, adding that the budget “puts the Guyanese people first.”