A CMC report says the most recent figures indicate that Guyana had a debt to GDP ratio of 45.2 per cent in 2017 down from 46.4 per cent in 2016, one of the lowest debt levels in the region.
“This is down from 48.6 per cent in 2015. How does this compare to the region? Sadly, some of our fellow CARICCOM countries are not in good financial shape. Barbados had a debt to GDP ratio of 145 per cent in 2016, Jamaica 120 per cent, Antigua 93 per cent and Grenada 89 per cent These debt levels are dangerously high and in the case of Barbados have meant severe austerity measures by the government and a move to the International Monetary Fund (IMF) for assistance,” says Jordan.
He noted that for Guyana, the current level is more than manageable, adding that debt should be viewed in relative terms and not absolute.
“So just as a household’s income may rise, Guyana’s GDP will rise too –this year by 3.6 per cent . And with First Oil only months away, the IMF forecasts Guyana’s GDP to increase by 38.5 percent in 2021 with a significant increase in official reserves and a gradual decline of the public debt-to-GDP ratio,” Jordan said.
Debt to GDP for an economy is similar to a household’s combined debt – from credit cards, mortgages or small loans – as it compares to its income.
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