In recent years, Guyana has emerged as the world’s fastest-growing economy, thanks to booming oil production and increasing export profitability. Fueled by significant oil discoveries, the country’s GDP soared by 38% in 2023 and 63% in 2022, putting it on the map as an economy to watch.
The turning point for Guyana came in 2015 when ExxonMobil discovered the Liza-1 well, a significant oil and gas field off Guyana’s coast. With partners like Hess Guyana Exploration and CNOOC Petroleum Guyana, ExxonMobil embarked on exploring the larger Stabroek Block area. Extensive drilling led to the discovery of several massive oil and gas fields, boosting the region’s potential for output.
As oil prices surged post-Covid-19 pandemic and global demand for alternatives to Middle Eastern and Venezuelan oil increased, Guyana’s economy reaped the benefits of its oil discoveries. With average annual growth rates exceeding 40% since 2020, Guyana is on track to continue its impressive economic expansion.
Looking ahead, research firm BMI predicts that further oil discoveries, increased output, and geopolitical tensions will drive Guyana’s GDP growth to 115% by 2028, making it the fastest-growing economy globally. However, the challenge lies in ensuring that this newfound oil bonanza translates into sustained progress for the Guyanese population. Avoiding the pitfalls of the “Dutch disease,” where reliance on a single commodity stifles other sectors due to rising domestic prices, will be crucial for Guyana’s economic future.