GUYANA’S economy over the last few years has experienced unprecedented growth. The country’s 2024 mid-year economic report, released by the Ministry of Finance, showed growth in the Gross Domestic Product (GPD) of 49.7 per cent. In the report, oil production was credited as one of the driving forces for the continued expansion of the economy. In fact, the oil and gas sector itself grew by 67.1 per cent in the first half of 2024.

Prior to 2024, the government projected a 34.3 per cent growth in the GDP. That projection has since increased to 42.3 per cent based on the nearly 50 per cent growth in the economy in the first six months of the year.
The International Monetary Fund (IMF) explains that GDP measures the health of national and global economies. The IMF also notes that when a country’s GDP is growing, workers and businesses are generally better off than when it is not. Positive growth in GDP also helps policymakers, investors and businesses make decisions by understanding an economy’s health.

In 2016, 2017, 2018, and 2019, Guyana experienced GDP growth of 3.3 per cent, 2.1 per cent, 4.1 per cent and 5.4 per cent respectively. Those figures represent how the country performed prior to oil production. When Guyana began producing oil in the offshore Stabroek Block, there was a drastic increase in how the country’s economy performed. In 2020, Guyana recorded the highest GDP growth in the country’s history at the time with a whopping 43.5 per cent. That exponential GDP growth continued in the years 2021, 2022, and 2023, with 18.5 per cent, 62.3 per cent, and 33 per cent respectively.

The government has on many occasions pointed out that while oil production is exceptional, it is a finite resource. Policymakers have said that the resources from oil production will be used to bolster the country’s non-oil sector. Some of those sectors include hospitality, construction, tourism, and agriculture.

Other areas where the resources from oil production will be channeled include ensuring Guyanese have access to quality education, healthcare, and social services. The government is also adamant about providing Guyanese with cheaper electricity by way of the Gas-to-Energy project and a plethora of other renewable energy projects.

“This is what energy, and the oil and gas sector will do for us. It gives us the opportunity with the resources to diversify our economy, building it out to many new pillars so that we will be resilient, strong, and sustainable,” President Ali has stated.

Overall, the oil and gas resources are being used directly and indirectly to expand the economy which has been an investor’s hub since production commenced in 2019. At present, Guyana produces over 600,000 barrels of oil per day. By the end of 2027, that number will rise to over one million barrels of oil per day with several projects slated to become operational.