STANDING on a diverse pillar of growth, Guyana is building an economy that could withstand global shocks, according to President, Dr Irfaan Ali.

Appearing on a recent airing of the Energy Perspective Podcast, the Guyanese Head of State noted that while the country has a burgeoning oil and gas industry, it is critical for the government to pursue economic diversification and build out the other segments of the economy.

“We have to be responsible in the way we manage the resources from oil and gas, and that is why it is so critical for us to pursue economic diversification and build out the other segments and sectors of our economy, so that in times of shock, or in times when the revenue is affected based on the global pricing mechanism, the economy can withstand those shocks,” Dr. Ali said.

In building these diverse pillars, he noted that Guyana and its neighbouring countries must continuously evaluate and examine potential opportunities across the region.

The question that he believes is lingering, is how to ensure the investments in infrastructure and advanced development could create new growth areas locally, but still be linked to the growth of the region.

“For example, when you look at the Linden to Mabura Hill roadways, when you look at the connection with northern Brazil, the type of opportunities that will bring to add to the value chain of gas in the near future… and not only gas at  Wales, but the second, more expansive gas development that we’re pursuing, where will the new areas of growth be created?” the Head of State queried.

The aim is to leverage the raw production in Lethem, Region Nine and Northen Brazil and convert that raw production into value-added goods for not just Guyana, but the entire region as well.

Ideally, with Guyana expected to reduce the cost of energy, it is expected that much traffic for trade and manufacturing is on the horizon.

“We have to look at not only the major industry, the large industries, but look at all the micro and medium-sized enterprises that can be developed out of this great potential when energy price will come down.

“And with the education programme that we’re investing in to have the human resource skillset, that of course, will be available to stimulate these small and medium-sized enterprises that must also benefit from this economic diversification and expansion,” Dr Ali said.

He pointed out that already Guyana is pursuing massive projects at a scale in the agricultural and other non-oil sectors.

Dr Ali said: “That is why we are investing at scale in food-production agriculture, so that we can have the raw material to feed into the value-added or value creation, because throughout the production line, you’re able to create additional wealth, create additional jobs, and higher-scale jobs and that is important for us.”

This, he noted, fits into the global scenario, as these projects Guyana could successfully build a diverse economy that is not solely dependent on oil and gas.

“The global scenario and the type of policies and shift that we expect globally must be absorbed by the economy, and the only way it can be absorbed is if we build out the economy in a wide, expansive way through its economic growth and prosperity is on many legs, and that is what we’re pursuing,” Dr Ali said.

In 2025, Guyana’s economy is expected to continue its unprecedented growth this year, with a projected economic expansion of 10.6 percent.

The agricultural, forestry, and fishing sectors are anticipated to expand by 11.4 percent in 2025, with production increases across all subsectors.

In the sugar industry, growth of 115.4 percent is expected, with a production target of 101,000 tonnes.

This growth will be supported by efforts in mechanisation and conversion, as well as value-added production.

Additionally, rice production is expected to expand by 12.4 percent, reaching 804,000 tonnes through expanded acreage and improved crop varieties developed through research and development.
The other crop sub-sectors are projected to grow by 11.7 percent, driven by expanded acreage and the country’s focus on strengthening local food security. Livestock production is also expected to grow by 7.5 percent across all categories.