President Dr Irfaan Ali on Wednesday dismissed as “comical” claims that Guyana’s economic growth is being driven mainly by government spending, saying such views reflect a poor understanding of how the economy actually works.
Continuing his daily Budget 2026 explainers, just over a week after the national budget was presented and as debates continue in the National Assembly, the President said the suggestion that non-oil growth is artificially inflated by government expenditure is simply false.
He stressed that Gross Domestic Product measures production, not payments, and that growth in the non-oil economy happens because businesses are producing more, productivity is rising and real value is being created across sectors such as construction, agriculture, manufacturing, services and trade.
President Ali explained that government spending does not appear in GDP unless real economic activity takes place — when workers are employed, services delivered or goods produced — and that there is no accounting framework that allows growth to be manufactured without actual production.
He pointed to major capital investments, including the Demerara River Bridge and hinterland infrastructure, saying these projects reduce costs, save time, increase productivity and create jobs, driving expansion in both oil and non-oil sectors.
According to official data, non-oil GDP has grown consistently over the past five years, contributing significantly to overall economic expansion. The President said it is important for citizens, investors and the international community to understand this reality, as confidence in the economy supports continued growth and investment.
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