OECD upgrade puts Guyana in stronger position to attract investment

The recent upgrade of Guyana’s risk classification for creditworthiness positions the country as a more attractive place for doing business, according to Senior Minister with Responsibility for Finance Minister, Dr Ashni Singh.

Last week, the Organisation for Economic Co-operation and Development (OECD) revised Guyana’s Country Risk Classification from level 5 to 4.

The country risk classifications measure a country’s credit risk and the likelihood that the country will service its external debt. Countries are ranked on a scale of zero to seven, with zero being low-risk and seven considered high risk.

Since 2020, Guyana has received two country risk classification upgrades under the Irfaan Ali-led People’s Progressive Party/Civic (PPP/C) Government, moving from the then high-risk rating of level 6.

“When we came into Government [in 2020], Guyana was a six…we were almost at the end of that end of the spectrum. And we set about immediately improving the environment for doing business and so on,” Dr Singh said during a recent appearance on the Starting Point podcast.

In 2022, Guyana received a welcomed upgrade from 6 to 5 in 2022 – something which the Finance Minister credited to the Government’s strong economic performance and sound fiscal policy management. This sustained growth, he added, contributed to this recent “favourably revision” from a level 5 to 4.

“Our fiscal position continues to be strong, so that our credit worthiness is more fully appreciated around the world… Since this People’s Progressive Party/Civic Government came into office under President Ali’s leadership, we have now secured two upgrades [firstly] from a 6 to a 5, and from a 5 to a 4, most recently.”

“That is an extremely positive thing for our country… Because it says to the world that the OECD, which comprises some of the largest economies in the world, perceives Guyana to be a considerably more attractive place for doing business today than it did in 2020, and considers Guyana to be a lower risk, considerably so, than it did in 2020,” Dr Singh posited.

He further explained that these classification upgrades have very direct consequences, especially since many international agencies such as export credit bodies use the OECD Country Risk Classification to determine the country risk premium that they will charge in the interest rates or in the cost of financing provided to countries.

“So, the favourable revision of our country risk classification has the immediate consequence that it will favourably impact the cost of our borrowing, particularly from export credit agencies who rely very heavily on this framework, but also through other channels who also, even if they don’t use the OECD framework as the primary or sole determinant of their financing cost, it is still a relevant input. It’s still something that they will consider.”

“And the fact that the OECD has seen it fit over the space of just the last four years to give Guyana two successive upgrades, speaks volumes for how Guyana is viewed by the rest of the world, and in particular, how we are viewed in relation to our economic and fiscal stewardship,” the Minister contended.

Guyana’s recent Country Risk Classification upgrade comes as global interest continues to mount on the local economy, driving not only by a burgeoning oil and gas sector but also an equally thriving non-oil industry.

In fact, the Guyanese economy’s continued strong performance and anticipated continued performance for the rest of this year was reflected in the 2026 Mid-Year, which projected an overall economic growth of almost 21 per cent for 2026, with the non-oil economy to expand at a rate of about 10.3 per cent this year.

According to the Finance Minister, “There is more global interest in Guyana than at any other point in time in the history of our country. So, several large financial institutions are now interested in finding out what is taking place in Guyana, what opportunities exist in Guyana, and how they might participate in those opportunities.”

Dr Singh, who spent the early part of last week attending the 2026 Annual Meetings of the International Monetary Fund and World Bank Group in Bangkok, Thailand, pointed out that a lot of time are taken up at these global forums engaging some of the biggest financing institutions around the world, answering their questions, updating their information set on economic developments in the country, and reiterating why Guyana continues to be one of the most attractive destinations for foreign direct investment and for doing business with the rest of the world.