GEORGETOWN, Guyana – President Dr. Mohamed Irfaan Ali has highlighted the vital importance of Guyana’s comprehensive economic diversification strategy in light of anticipated global economic shocks stemming from policy shifts in the United States and their impact on major economies.
During a recent address, President Ali emphasized that although Guyana is one of the fastest-growing economies globally, it remains interconnected with regional and global markets facing significant challenges.
The expansion of oil and gas exploration initiatives in the US could have ramifications for Guyana’s economy. President Ali stressed the necessity for proactive planning to ensure long-term stability that extends beyond the oil and gas sectors.
“Our message to the Guyanese people has been clear from the beginning: we must manage our oil and gas resources responsibly. Hence, pursuing economic diversification and developing other sectors of our economy is crucial,” President Ali stated.
The government is channeling oil revenues to enhance infrastructure, health, education, housing, and other essential social services. It aims to position Guyana as a significant food production hub.
President Ali raised alarms regarding rising food prices potentially triggered by labor shortages in the US due to immigration policies and adverse weather conditions.
In anticipation of these challenges, the government has invested heavily in sustainable agriculture, agro-processing, and innovative farming technologies, including hydroponics.
“Our economic initiatives not only create local opportunities but also address global challenges. The development of our economy must be in harmony with international realities,” the president affirmed.
The 2025 national budget aims to mitigate these challenges, with the government maintaining pre-COVID freight rates for import duties. President Ali underscored that these measures will alleviate economic burdens on consumers. The budget also includes provisions to tackle bottlenecks in the Demerara River, enabling large ships to navigate Guyana’s waters.
“We are collaborating with the private sector to establish a sustainable model for dredging, ensuring a consistent draft at both low and high tides for large vessels,” President Ali disclosed.
The president reiterated the necessity for regional collaboration in economic growth, citing the investment in constructing the Linden to Mabura Hill roadway, connecting Guyana with Northern Brazil. This significant investment, he noted, will facilitate collaboration and enhance trade opportunities by integrating Guyana’s economy with regional supply chains.
With energy prices set to decrease significantly due to the transformative gas-to-energy project at Wales in Region Three, President Ali stated it is crucial to develop a comprehensive transport and logistics plan.
“We must consider not only the large industries but also the potential of micro and medium-sized enterprises emerging from this opportunity,” the president remarked, referencing Trinidad and Tobago as an example of utilizing oil revenues to create affordable energy, fostering robust manufacturing and agro-processing sectors.
By boosting food production and enhancing the manufacturing and agro-processing industries, the government aims to generate wealth, create jobs, and build resilience against economic uncertainties. These topics were among various issues addressed in a recent podcast discussion, available through official channels.
