In 2016, the growth of Guyana's economy slowed again as a result of falling production of rice, sugar and livestock, and the decline of the construction and manufacturing sectors. However, the operation of two new gold mines, which began production in late 2015, made a contribution to growth of around 1.7 points of GDP in 2016. The overall upswing in gold prices supported the rise in production. In 2017, production seems set to stabilise at a high level and should support a rise in growth. The performance of other sectors, linked mainly to the agriculture sector, should improve thanks to more favourable climatic conditions. Low external demand, in a context of high tensions with Venezuela, may limit the contribution the agriculture sector makes to growth in 2017. The implementation of projects as part of the Public Sector Investment Programme (PSIP) should help drive the construction and manufacturing sectors. Under this programme, the government will pursue its ambition to improve transport and telecommunications infrastructure and renewable energy projects.

In 2016, the government softened the fiscal austerity policy it had implemented in 2015, increasing the budget deficit. In 2017, the deficit seems set to rise as the government is eager to accelerate implementation of the PSIP. The government has set aside nearly 150 million euros to reduce the deficit in infrastructures, to which will be added the costs of implementing a series of renewable energy projects. Health, education and security spending will remain high. In addition, 41 million euros will again be transferred to the state-owned sugar production company GuySuCo, bringing the total injected into the company to more than 145 million euros since 2015. The rise in spending will probably not be offset by tax receipts, which look set to remain stable. The imposition of VAT on water and electricity bills would be a way of compensating for its two-point reduction. The government hopes to increase receipts through better collection of corporate tax (accompanied by a reduction in the basic rate) and income tax.

After over 20 years in power, the People’s Progresive Party/Civic lost its place in the multi-ethnic coalition led by the A Partnership for National Unity and Alliance For Change parties at the general elections in 2015. Parliament then named David Granger as head of the government. Despite a one-seat majority, David Granger seems better placed to govern the country than his predecessor's coalition government. However, he will be hindered by the continuing ethnic divisions (Indians/Africans) in the Guyanese political scene. However, these divisions seem to have eased since local elections in March 2016, the first in 22 years. Despite some progress, the business climate in Guyana remains difficult (124th out of 190 countries in the World Bank's 2017 Doing Business survey).