ONE true indicator of a country’s growth potential is its ability to attract Foreign Direct Investments (FDIs). In this regard, Guyana is ahead of the curve and is, in fact, a major destination for foreign investment. This is indeed a remarkable development, especially at this exciting stage in the country’s economic life.

Just a few decades ago, the country was experiencing its worst economic moment. The World Bank, in its 1993 report on Guyana had the following to say: “Guyana is one of the poorest country [sic] in the southern hemisphere with a per capita income of only US$290 in 1991…During the 1980s, real gross domestic product continually declined, averaging 2.8 per cent per annum during the 1980-88 period. The level of recorded output in 1988 was only 68 per cent of the 1976 level.”
According to the report, inflation averaged 20 per cent per annum. By the mid-1980s, the government was unable to meet its debt-service obligations.

The worsening economic situation lowered real wages and consumption and many talented Guyanese migrated abroad to more lucrative opportunities, further limiting the government’s ability to deal with its problems.’
Fast forward to Guyana today under the PPP/C administration. According to the most recent Economic Commission for Latin America (ECLAC) Report, Guyana has maintained its position as the top foreign direct investment destination in the Caribbean.
The report highlighted the impact of Guyana’s growth trajectory on regional economic growth, driven in large measure by the country’s hydro-carbon resources. Foreign Direct Investment grew by 116 per cent in 2021 compared to the previous year, representing a 65 per cent increase in the country’s Gross Domestic Product (GDP).

This is indeed a meteoric rise in the economic fortunes of the country. Foreign investment is a significant contributor to national development, both in terms of financial inflows and job creation.
The fact that Guyana has solidified its position as the leading FDI destination in the Caribbean for the second running year is indicative of the country’s developmental pull as the premier investment destination in the Region and beyond.
Guyana, according to the ECLAC report, is ranked ahead of the United States, Mexico and Norway in terms of consolidation of its position as the world’s fourth largest offshore oil producer by 2035.

But, as pointed out repeatedly by President Dr. Mohamed Irfaan Ali, economic growth, important as it is for overall development, is not an end in itself but the means to a much greater end, namely, to enrich the material and spiritual life of the Guyanese people.
The revenues generated from our oil resources and from the sale of our carbon credits have been substantial. Several developmental projects encompassing all facets of life are currently underway, including the development of house lots and creation of new housing units; construction of roads and bridges; construction of new schools and hospitals and by no means least, funds specially earmarked for Amerindian development.

These are all tangible benefits impacting directly the quality of life of the Guyanese people. Despite the manifest benefits of the revenues from our petroleum resources, there are still a few who seek, as it were, to paint a picture of gloom and doom.
Both President Ali and Vice-President Dr. Bharrat Jagdeo have acknowledged that the contract entered between the previous APNU+AFC administration and ExxonMobil was not in the country’s best economic interest and have given full assurance that any new contract entered into will have to be negotiated on more favourable terms.

This is indeed a fair and balanced position. But to continue to bemoan the past and seek to have the contract re-negotiated as some opposition elements are advocating, could be inimical to the country’s best interest, especially in terms of investor confidence which is now at an all-time high.
The economic health of the country is not only good but is also in safe hands. Full credit must be given to our visionary PPP/C leaders for successfully steering our economic ship along the path of turbulent international waters.