-As extractive industries register strong performance in Q1 – Central Bank

THE Guyanese economy recorded positive growth during the first quarter of 2025 as major economic transformation progressed in key sectors. This was outlined in the Bank of Guyana’s report for that period. The financial institution, which monitors the economic well-being of the nation, was keen to note that the oil and gas subsector was a major contributor to growth, albeit moderately.

Expounding on the performance of the oil sector, the Central Bank said it recorded an increase of 1.8 per cent to 56.8 million barrels, a modest increase when compared to the 56 million barrels produced at the end of March 2024. This outcome, it said is primarily on account of strong contribution from Prosperity, Guyana’s third floating, production, storage and offloading (FPSO) vessel, which experienced an 11.5 per cent increase in production of crude oil when compared to one year earlier.

The Central Bank noted that the Liza Destiny and Liza Unity FPSOs experienced lower production of crude oil by 8.5 per cent and 0.1 per cent, respectively.

As it relates to bauxite production, the Central Bank said this grew significantly to 941,200 tonnes, compared to 96,638 tonnes one year earlier. This outcome, it said, is primarily on account of higher production of Metallurgical Grade Bauxite (MAZ) of 804,179 tonnes. In terms of Chemical Grade Bauxite (CGB), the Bank of Guyana said this increased to 81,447 tonnes, and Refractory Aggregate Super Calcined Grade Bauxite (RASC) increased to 41,623 tonnes. It was noted, however, that the production of tailings bauxite declined to 13,951 tonnes.

Another strong performer in the extractives sector was gold. The Central Bank reported that declarations grew by 12.8 per cent to 101,369.2 troy ounces. The small and medium-scale miners also recorded higher declarations by 13.1 per cent, while the sole large-scale operator, Zijin, recorded an increase in declarations by 12.3 per cent.

The declaration of crushed stone also saw an increase to 1,432,332 tonnes, while production of manganese increased to 82,692 tonnes. In contrast, sand extraction declined by 3.7 per cent to 2,711,314 tonnes and diamond declarations declined by 58.0 per cent to 5,615.5 metric carats.

Overall, Central Bank said, “The Guyanese economy is projected to record real GDP [Gross Domestic Product] growth of 10.6 per cent, as the oil and gas and support services sector is expected to grow moderately.” Notably, this 10.6 per cent growth will keep Guyana on track to record the highest growth rate in the region.

As for non-oil GDP growth, the financial institution said it is projected at 13.8 per cent. “This growth will be primarily due to continued development of the agriculture, forestry, and fishing sectors, along with further expansion of the construction, manufacturing and services sectors,” the bank said in its report.

It was also noted that the gold and bauxite mining industries are expected to further expand and influence the growth of the non-oil economy.