GUYANA’s economy has recorded the highest cumulative growth rate in Latin America and the Caribbean. This disclosure was made by the World Bank which, having considered the economic performance of the regional economies, determined that Guyana recorded a cumulative economic growth rate of 72. 03 per cent, by far the highest in the entire hemisphere.

The country that came closest to Guyana is Nicaragua, which recorded cumulative economic growth of 7.53 per cent, an indication of the stellar performance of the Guyana economy during the 2019-2021 pandemic period.

Guyana, like other countries in the region, has not been spared the impact of the COVID-19 pandemic which has created economic havoc in almost every country. In Guyana’s case, the economy suffered a major setback due to the floods in 2021 which, along with the COVID-19 pandemic, took a heavy toll on the economic and social life of the country.

However, with prudent economic management and enhanced earnings, the economy was able to surge ahead to become the fastest growing economy in the region and, for that matter, the world.

Guyana’s economy is not isolated from what is taking place in the world as a whole. The invasion of Ukraine by Russia is continuing to have a punishing effect on the economies of several countries especially those that are dependent on imported fuel and agricultural inputs such as fertilizer and animal feed.

The prices of fuel, wheat and other commodities have already risen sharply on the world market giving rise to protest actions in several countries. Sri Lanka is currently facing one of its most serious economic crisis in decades and the President of Pakistan, Imran Khan, was recently removed from office as a result of a successful no-confidence vote against his leadership.

And while not all of the political and economic challenges are attributable to exogenous factors, they do contribute to some amount of political instability which several countries in the world are now experiencing.

In the case of Latin America and the Caribbean, the scars of the COVID-19 pandemic continue to linger on, even though, thankfully, there are some positive indications of economic recovery.
According to the World Bank, regional Gross Domestic Product (GDP) is expected to grow by 2.3 per cent this year and a further 2.2 per cent in 2023, with most countries now in the process of reversing the GDP losses from the pandemic crisis.

This is good news, even though, as noted by the Bank, these modest projections still place regional performance among the lowest in the world. This, in the view of the Bank, comes at a time ‘when the region faces important uncertainties as new variant of the virus may appear, inflation pressures mount and the war in Europe threatens world recovery.’ The regional growth projection has in fact been revised downward by 0.4 per cent following the Russian invasion of Ukraine.

In all of this, Guyana has emerged as a shining star. For one thing, the PPP/C administration has embarked on a robust economic recovery programme while at the same time putting in place a number of policy interventions to cushion the impact of the COVID-19 virus. Indeed, Guyana is ahead of most countries in the region in terms of adult vaccination rates and relief efforts to cushion the effects of the pandemic especially among vulnerable populations and groups.

The Guyana economy, according to World Bank projections, is expected to grow by 47.5 per cent this year. This is nothing short of a stellar performance and is likely to show further growth as more oil production wells become operational.

The Yellowtail Well, for example, is projected to achieve first oil by 2025 with an estimated capacity of 250,000 barrels per day. This, along with other wells soon to come on stream, will catapult Guyana to the league of major oil producing nations. The economy will be given a further financial lift, especially if the trend of rising fuel prices continue in the coming years. Already, the war in the Ukraine has resulted in a significant hike in fuel prices which could potentially result in higher oil revenues to the country.

The economic prospects are bright for Guyana and, as pointed out by President Dr. Mohamed Irfaan Ali, our economy is becoming stronger and is rebounding from the adverse impact of the two-year long effects of the COVID-19 pandemic. According to President Ali, businesses, both local and foreign, are capitalizing on the unfolding opportunities and in the process generating jobs and providing incomes for our citizens.

The President and his administration must be commended for taking the country from the brink of economic collapse and undemocratic rule to one in which Guyana has become a regional model of economic growth and social progress. The multi-faceted and balanced approach to economic development within the framework of a low carbon development trajectory has gained international acclaim and could very well be a model for other nations, both developed and developing, to emulate.