Guyana’s economic prospects remain region’s best

country on course to record double-digit growth again next year
–ranks among countries that recorded lowest reduction in inflation rate when compared to last year, latest ECLAC report shows

GUYANA’S economic growth projections remain far above its counterparts in the Latin American and Caribbean region, the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) has revealed in its latest economic survey, titled: “Financing a sustainable transition: Investment for growth and climate change action”.
Reflecting on the developments that have set Guyana on this course, ECLAC said, in 2020, six investment projects in Guyana were announced, including an oil exploration project by the United States company, ExxonMobil, for US$10 billion.
To give an idea of the size of these projects with respect to the country’s economy, in 2021, Guyana had a Gross Domestic Product (GDP) of US$6.816 billion, and a population of roughly 800,000.
Two energy sectors —coal, oil and gas and renewable energy— became more important in 2022, owing to higher global energy prices, and also to the ongoing energy transition efforts.
The growth in coal, oil and gas mainly came from large projects announced in Guyana and Mexico, which, together totalled over US$22 billion, and accounted for 93 per cent of the total for projects in the sector.
This significant growth has already led to a surge in employment opportunities and foreign investments, effectively boosting Guyana’s economic prospects.
The country is on course to recording real Gross Domestic Product (GDP) growth of 25 per cent this year, and maintaining this economic performance in the new year, when it is projected to record economic growth of more than 20 per cent.
Also, in June 2023, Guyana was among a total of 26 countries which reported an inflation rate that was lower than at the end of 2022.
“The largest reductions were recorded in Chile, Costa Rica, Guatemala, Guyana, Honduras, and Trinidad and Tobago, where inflation was down by more than four percentage points,” the report said.
Guyana has undergone a remarkable economic transformation, experiencing a threefold increase in the size of its economy since 2020, according to President Dr. Irfaan Ali, during a recent press conference.

The news of Guyana’s GDP surging from $1.1 trillion in 2020 to an impressive $3.1 trillion by the end of 2022, has positioned the nation as the fastest-growing economy in the world.
The Head of State had said that the momentous growth can largely be attributed to the successful commencement of oil production at the Lisa Unity Floating, Production, Storage, and Offloading (FPSO) vessel, marking a new era of prosperity for the country.
“Guyana’s economy has almost tripled since the end of 2020, with our nominal GDP moving from 1.1 trillion in 2020 to 3.1 trillion at the end of 2022. Of course, this is largely owing to the start-up of oil production at the Lisa Unity FPSO. Guyana is now the fastest-growing economy in the world,” the President said.
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. The country, according to the World Bank, is set to record real Gross Domestic Product (GDP) growth of 25.2 per cent this year, 21.2 per cent next year, and 28.2 per cent in 2025.
President Ali highlighted these achievements, stating: “In our first budget, more than 200-plus taxes and fees imposed by the APNU+ AFC government were fully removed. The electricity and water subsidies were restored, benefitting over 28,000 pensioners; we increased old age pension by 61 per cent, restored and increased the ‘Because We Care’ cash grant; and restored the Disciplined Services one-month tax-free bonus that was previously removed by the APNU+AFC government.”