— closes 2020 with average GDP growth of 26.2 per cent, according to the IMF

By Navendra Seoraj
DRIVEN by a diverse economy, Guyana continues to lead global economic growth, closing 2020 with an average real Gross Domestic Product (GDP) growth of 26.2 per cent, according to information from the International Monetary Fund (IMF)’s website.

Guyana, with this rate of growth, was projected by NASDAQ Stock Market in October 2020 to remain as the fastest growing economy in the world. NASDAQ is said to be the second largest stock exchange in the world by market capitalisation, behind only the New York Stock Exchange located in the same city.

Despite the debilitating direct and indirect effects of the dreaded novel coronavirus (COVID-19) pandemic and a protracted electoral process, Guyana’s projections remained positive throughout the latter part of last year and it showed equally promising signs for the years ahead.

Looking forward, according to NASDAQ, Guyana’s growth is expected to come in at 12 per cent in 2021, 49 per cent in 2022 and 28 per cent in 2023. The country’s GDP of about $6.8 billion is expected to more than double by 2025, reaching over $14 billion.

Guyana is a middle-income developing country and is covered by dense forests, and is home to fertile agricultural lands and abundant natural resources. Gold, bauxite, sugar, rice, timber, and shrimp are among its leading exports.

This nation, however, attracted international attention after ExxonMobil made the first commercial discovery of oil offshore Guyana in 2015 and started production in December 2019. In September 2020, ExxonMobil made its 18th discovery offshore Guyana at the Redtail-1 well. And, according to NASDAQ, Guyana, with its estimated recoverable resources of about nine billion barrels of oil equivalents is projected to be among the world’s largest per capita oil producer by 2025.

“Our economic prospects have never been brighter. Our collective feet are firmly placed on the first rungs of a ladder to prosperity that is clearly within our sight,” President, Dr Irfaan Ali said during his message to the nation on January 1, 2021.

The year 2021, according the President, will be the springboard from which Guyana will leap into recovery, rebuilding the economy, enhancing the people’s health and lifting up the vulnerable in groups in society.
“We must not remain a rich country of poor people,” the President affirmed, noting that the bounty of Guyana must be shared across the population.

HIGH NOTE
This country having received payment of US$49.3 million for its fourth oil lift, has ended the year on a high note with approximately US$200 million being generated so far from the country’s nascent oil and gas sector.
Considering the country’s oil revenue and other lucrative sources of income, the President believes that the standard of living and the quality of life must be lifted for all. Work will be rewarded; hard work will be rewarded even more, he said.

“Opportunities will be created to join in such work, and they will be made available to all. I recognise that there are communities within our society which, because of disadvantages of geographic location, will need more help than others to join our national advance,” President Ali reasoned.

The country will have to identify those communities, assess their needs, identify solutions, and implement plans to change their circumstances. This change will not occur overnight, it will take time. But every journey begins with a first step, the President said.

“I intend to initiate that first step, and to maintain a steady pace that will take us to that journey’s end. We still have many challenges ahead of us,” the Head of State said.

In the President’s assessment, Guyana’s economic recovery is demonstrably underway, with the business communities in Georgetown and elsewhere reporting better performances over the recent holiday season, than any of the previous five years.

And this was achieved, even with the restrictions of the COVID-19 pandemic. The President believes that there is more money in circulation, and more disposable income in people’s pockets than the country has witnessed in a long time.

“I am confident that the steps which our Government will take in 2021 will continue to lift up our economy, and improve the fortunes of every person within our nation. The task before us in 2021 is to reaffirm our belief in ourselves as one people and one nation, determined to rise together in harmony, showing the world the strength and determination of which we are capable,” President Ali related.