President Dr. Irfaan Ali has pointed to Guyana’s low and stable inflation rate as a key indicator of successful macroeconomic management, noting that price stability has been maintained despite global volatility and rapid domestic economic expansion.
Speaking during a recent review of the government’s Fiscal Package for 2026 and overall economic performance, President Ali said Guyana currently records one of the lowest inflation rates in Latin America and the Caribbean, positioning the country favourably amid ongoing global price pressures.
He attributed this outcome to prudent fiscal and monetary coordination, along with targeted policies aimed at managing the cost of living while sustaining high levels of public investment and growth.
“In a global environment characterised by inflation shocks, Guyana has managed to maintain stability,” the President said, describing price control as central to efforts to “shock-proof” and “future-proof” the economy.
President Ali recalled that inflation stood at 0.9 per cent in 2020, prior to the global disruptions triggered by the COVID-19 pandemic. Despite subsequent international supply chain shocks and commodity price surges, Guyana has managed to contain inflationary pressures while expanding infrastructure spending and development programmes.
He said this stability reflects disciplined economic management and proactive cost-containment measures that have helped preserve households’ purchasing power and provide predictability for businesses.
The President linked low inflation to a broader fiscal framework that has reduced the tax burden while maintaining fiscal space. He noted that tax revenue as a share of GDP declined from 14.5 per cent in 2020 to 6.4 per cent in 2025, meaning Guyanese are paying significantly less tax on each dollar earned.
At the same time, public and publicly guaranteed debt fell from 53 per cent of GDP in 2020 to 30 per cent in 2025, strengthening Guyana’s fiscal position.
According to President Ali, the combination of lower effective taxation and price stability ensures that households retain more income in real terms. At the same time, businesses benefit from a more predictable environment for planning, pricing, and investment.
Macroeconomic stability has also supported investment flows and financial sector activity. President Ali noted that foreign investment peaked at US$11.2 billion in 2025, while credit to the private sector expanded by 18 per cent between 2024 and 2025.
He said these trends reflect confidence in the economy, the currency, and the broader policy environment.
“Credit to the private sector grows only when there is confidence in economic performance,” the President said, adding that lending patterns indicate increasing alignment between the financial system and Guyana’s diversification and development objectives.
For investors, sustained low inflation, declining debt ratios, and expanding credit signal a stable macroeconomic platform capable of supporting long-term capital deployment. Officials have consistently emphasised that macroeconomic discipline remains a priority even as the economy scales rapidly.
President Ali said maintaining stability alongside growth remains central to Guyana’s development strategy, ensuring that expansion translates into durable gains for households, businesses, and investors alike.
