Guyana’s regulatory environment, business freedom lauded by Economic Freedom Index

…labour, monetary freedom also rated above world average

Guyana has been recognised by the Index of Economic Freedom for the efficiency of its regulatory environment, scoring an overall score of 58.2 and improving in its ranking when it comes to economic freedom.
The Index of Economic Freedom, is an annual index prepared by The Heritage Foundation, an American conservative think tank, and The Wall Street Journal. In this year’s index, Guyana was ranked 99 out of 184 countries for its economic freedom. Its 58.2-point score is a 0.9-point increase from last year.
Guyana received a strong score when it comes to its overall regulatory environment. The report described Guyana’s regulatory environment as well institutionalised and relatively efficient. It also noted that Guyana’s business, labour and monetary freedom scores of 71.1, 76.7 and 76 respectively, are above world average.
Another metric used was the openness of Guyana’s market. It was noted that generally, both foreign and domestic investors are treated equally under the law. However, lack of access to financing was recognised by the index as a hindrance to the growth of entrepreneurship.
“The trade-weighted average tariff rate is 13.0 per cent, and multiple nontariff measures are in effect. In general, foreign and domestic investors are treated equally under the law. The financial sector is underdeveloped, and limited access to financing impedes the long-term growth of entrepreneurial activity,” the index stated.
Government spending and the tax burden were both rated well, with scores of 83.6 and 76.9 respectively. But when it comes to the rule of law, including the effectiveness of the judiciary for which Guyana received a score of 48.3, the index noted that this was below average.
“The top individual income tax rate is 40 per cent, and the top corporate tax rate is 25 per cent. The tax burden equals 9.5 per cent of GDP (Gross Domestic Product). Three-year Government spending and budget balance averages are, respectively, 23.3 per cent and 6.1 per cent of GDP. Public debt amounts to 26.4 per cent of GDP,” the report added.
As recent as March, the Georgetown Chamber of Commerce and Industry (GCCI) had called for the Central Bank to take necessary steps and procedures to address existing gaps in the country’s financial sector as it relates to the demands of the economy and business landscape and the ability or lack thereof, of the banking sector to deliver the level and quality of services needed.
In 2023, the GCCI had met with the Finance Ministry, the Governor of the Bank of Guyana, and the Guyana Association of Bankers Inc to begin discussions on the banking challenges. Since then, towards making tangible improvements in the legislative framework of the financial sector the Government has laid and passed the Security Interests in Movable Property Bill, and the Financial Institutions Amendment Bill of 2024.
The Security Interest in Movable Property Bill was passed with bipartisan support in the National Assembly in December. The bill has been described by the GCCI as “a game-changer” to the financial sector in Guyana. The Act allows businesses to leverage moveable assets—ranging from vehicles, equipment, and inventory to crops, livestock, and even intellectual property—as collateral to access credit.
The GCCI had described this as a much-needed boost for enterprises that have often struggled to secure financing under the traditional collateral models. Meanwhile, the Financial Institutions Amendment Bill of 2024, allows foreign financial institutions to establish representative offices in Guyana.
The Government has made progress when it comes to using digital solutions to improve the ease of doing business. In 2024, the Housing Ministry’s Central Housing and Planning Authority (CH&PA) had launched the Electronic Planning and Development Single Window System with the aim of consolidating the various applications needed for the construction permitting process and having them approved through one portal.
And it was announced in January, less than a year after becoming operational, that the Electronic Planning and Development Single Window System had already approved over a dozen applications while more than 300 applications are currently being processed including several for major oil and gas projects.