THE strong performance from the oil and gas sector, and massive increase in non-oil exports during the first half of 2023, have pushed Guyana’s export earnings to over US$6 billion, higher than the sum recorded during the same period last year, according to the Ministry of Finance’s mid-year report.
According to the report, total export earnings continued the upward trend, growing by 38.8 per cent to US$6.039 billion at the end of June 2023.
The report found that the contributor to this surge has been the increase in export volumes, particularly in crude oil, which raked in a substantial US$5.374 billion in the first half of the year.

This marks a remarkable increase of US$1.761 billion compared to the same period last year. However, the report highlights that the growth in crude oil earnings could have been even higher if not for a moderation in global oil prices.

“Non-oil export earnings, on the other hand, decreased year-on-year, largely on account of lower earnings from gold, the ‘others’ category, and bauxite. These contracted by US$38 million, US$22.7 million, and US$9.5 million, respectively,” the report said.
The Finance Ministry reported too that total import payments also grew substantially over the review period reaching US$3.717 billion, increasing by 111.8 per cent over 2022.
“Growth in total import payments is largely attributed to the importation of the Prosperity FPSO (floating production storage and offloading) and imports of fuel and lubricants, which contributed 47.4 per cent and 16 per cent to total import costs, respectively,” the report said.

Guyana’s third FPSO, Prosperity, arrived at the offshore Stabroek Block in April and joins the Liza Destiny and Liza Unity, which are currently producing over 380,000 barrels per day.
It is expected to operate on the Payara project and designed to produce 220,000 barrels of oil per day, and has an overall storage volume of two million barrels. Daily oil production is expected to increase to almost 600,000 barrels a day in 2024, with production from the Prosperity vessel, boosting Guyana’s annual revenue.
The mid-year report also highlighted that total imports of capital goods grew by US$1.852 billion, consumption goods by US$79.3 million and intermediate goods by US$36.9 million.
“Within this, payments for non-factor services grew by US$362 million to US$2.099 billion, mainly as a result of increased payments for construction services, which itself expanded by US$311.2 million at the end of June 2023.

“Net payments for factor services also grew year-on-year by US$86.1 million, largely reflecting an increase in the repatriation of the Stabroek Block operator’s share of profit oil amid higher production,” the report said.
The outlook for the second half of the year continues to be favourable, especially after the country recorded real Gross Domestic Product (GDP) growth of 59.5 per cent in the first half of 2023, while the non-oil economy grew by 12.3 per cent.
This was according to President, Dr Irfaan Ali, during a recent press conference. He said that this growth was due to a “direct result of the policy matrix of the government in the country investing, reigniting the traditional sectors, and expanding our economic footing.”

It was reported that returns from the sector are expected to catapult Guyana to the ranks of wealthiest countries in the Western Hemisphere, thereby increasing the government’s fiscal space to invest in initiatives geared at expanding the economy and improving the overall welfare of citizens.
In order to solidify the foundation of Guyana’s economy and enhance the overall well-being and welfare of every Guyanese, the government is crafting a framework for development that will be sustained through prudent and effective investment of oil funds into education, health, infrastructure and the non-oil sectors.
This extraordinary accomplishment, he said, comes in the face of a challenging global crisis that has inflicted human costs, and exposed vulnerabilities in the global food and energy supply.
While global inflation peaked at 8.9 per cent last year, and is projected to remain elevated at 6.1 per cent this year, Guyana has emerged as a beacon of economic strength.
President Ali further revealed that Guyana is poised to continue its exceptional growth trajectory in the coming years.

Guyana’s non-oil growth is estimated to reach an impressive 7.9 per cent this year, building upon the remarkable 11.5 per cent growth achieved in the previous year.
The President also underscored the government’s commitment to prudent fiscal management, as evidenced in the significant reduction of Guyana’s debt-to-GDP ratio.
By the end of 2022, the President revealed, the ratio stood at 24.6 per cent, which was demonstrative of the government’s responsible handling of the country’s financial resources.
Guyana is the only country on course to record double-digit growth this year, as well as in the near future.