By Antonio Dey | HGP Nightly News|
As global oil prices continue their significant downward trend, economist Elson Low warns that the Guyanese government may be forced to reassess its economic policies as it prepares this year’s national budget.
Low noted that while falling oil prices often benefit oil-importing countries by lowering production and consumer costs—effectively acting as a tax cut—oil-exporting nations face a different reality. Lower prices can reduce government revenues, scale back investments, lead to job losses, and trigger broader economic slowdowns.
He cautioned that Guyana, despite its strong performance in the oil and gas sector in recent years, cannot ignore the risks associated with declining oil prices. Several energy analysts have projected further price declines this year, with direct implications for public spending and fiscal planning.
Speaking during an interview with HGPTV Nightly News, Low said the government must return “to the drawing board” and review its economic framework as budget preparations advance.
According to the economist, the era of high oil prices presented an opportunity to strengthen efficiencies across government spending, an effort he believes was not fully realised. He argued that improving efficiency is now even more critical to ensure citizens benefit directly through better wages for public servants and enhanced social support.
Low was also critical of what he described as limited efforts by the Ali-led administration to ease the financial pressures faced by ordinary Guyanese, particularly amid a rising cost-of-living environment. He suggested that without meaningful efficiency reforms, the upcoming budget could be characterised by restrained spending and limited benefits for the broader population.
With the prospect of lower oil revenues, Low urged the government to adopt more innovative and more disciplined economic strategies to avoid future hardship. He specifically called for improved disposable incomes for senior citizens and enhanced benefits for workers in the health and education sectors.
Looking ahead, the economist recommended that the government allocate resources toward engaging consultants and technical experts to strengthen governance, planning, and fiscal management during what he described as a potentially challenging period for oil-dependent revenues.
