DESPITE the increasing aggression of Venezuela, Guyana’s business climate is remarkably unscathed, and continues to show impressive growth.
As testified to recently by Georgetown Chamber of Commerce and Industry President Kathy Smith at the Offshore Technology Conference, the private sector has operated uninterrupted, bearing witness to the record resilience of the Guyana economy amid geopolitical tension.

This consistent performance is in contrast to the atmosphere of uncertainty frequently dramatised by global media, which Smith appropriately pointed out has the tendency to provide skewed reports.
The truth on the ground is an economy not just barely holding on despite pressure, but actually booming, as Guyana positions itself as the newest major player in the international energy arena.
The jarring disparity between global perceptions and on-the-ground realities is perhaps best exemplified by Guyana’s remarkable economic growth. The nation registered an impressive 43.6 per cent GDP growth in 2024, with solid growth also being realised in other non-oil sectors.

The trend of diversified growth demonstrates that economic advancement in Guyana extends well beyond the oil sector, solidifying a better foundation for sustainable progress.
The private sector’s overwhelming participation with the government’s ambitious $6.6 billion national budget also further asserts the business community’s confidence in the nation’s economic trajectory and leadership.
With record total expenditure of $1.382 trillion for 2025, the government has clearly focused on equitable benefit sharing from the country’s strong economic growth while establishing a business-friendly environment.
Since 2015, the discovery of vast quantities of oil reserves off the coast of Guyana has rewritten the country’s economic future in a dramatic manner. With more than 11 billion barrels of oil-equivalent resources discovered, and production projected to reach about 620,000 barrels per day when the Payara field is at full capacity, Guyana’s status as a future energy powerhouse seems certain.

Even with Venezuela’s growing aggression, such as troop mobilisations along Guyana’s western border and naval incursion into Guyana’s Exclusive Economic Zone, major operations remain unimpeded.
The fact that ExxonMobil’s exploration and production activities go on uninterrupted sends a powerful message on operational continuity despite intimidation attempts.
The unyielding confidence in the private sector about Guyana’s economic solidity is partly owing to the proactive approach of the government in advocating business growth.
Recent policy interventions have increased the business climate to be more favourable, e.g., VAT relief on critical inputs such as agricultural machinery and standby generators; interventions that are specifically geared towards lowering the cost of doing business, and promoting diversification in non-oil industries like manufacturing and agriculture.

Also, the Guyanese government has prudently chosen to confront Venezuelan claims to territory on its own terms in respectable international legal forums rather than fruitless bilateral showdowns. This approach has been globally adopted, and provided a model for peaceful resolution that is adoptable by companies for planning purposes.

The case before the International Court of Justice (ICJ) concerns the 1899 Arbitral Award that clearly delineated the border between the two nations through a judgement that had been accepted by Venezuela for many decades, until it unexpectedly declined in 1962.
The border conflict has ancient historical roots, but has increased considerably since the discovery of massive oil reserves. Venezuela’s claim of approximately two-thirds of Guyana’s territory in the resource-rich Essequibo region represents not only a border controversy, but an existential challenge to Guyana’s territorial integrity.

The coincidence of the increased assertiveness of Venezuela with massive ExxonMobil oil discoveries in the Essequibo waters belies economic interests likely behind this claim. Despite these strains, the ICJ ordered fundamental provisional measures in 2023, instructing Venezuela not to disrupt the status quo in the area of contention – essentially validating the administrative control by Guyana of the territory.
The nation’s ability to maintain this economic momentum amid challenging geopolitical tests is a testament to its potential and resilience.