Guyana, which has been experiencing marked tension with Venezuela since the year, has the highest economic growth since 2019 worldwide thanks to oil.
“Guyana’s economy has tripled in size since the start of oil extraction (at the end of 2019), from one of the lowest GDP per capita in Latin America and the Caribbean in the early 1990s,” the Fund has revealed. International Monetary Fund (FM).
Additionally, oil production is increasing rapidly, supporting the world’s strongest real GDP growth in 2022.
With the help of oil revenues, transferred for the first time to the national budget in 2022, the government has begun to invest heavily to address major development needs, explains the body led by Kristalina Georgieva.
In late 2021, ExxonMobil built its second floating production, storage and offloading vessel, Liza Unity, to extract crude oil.
The machinery that was imported for the ship led to substantial growth in imports (95 percent) and foreign direct investment (116 percent).
The new vessel will multiply the total production capacity of the energy sector almost threefold, reaching 340 thousand barrels per day in 2022.
Additionally, the American ExxonMobil invested in 2022 beyond what the gross domestic product of Guyana is worth, a country that is leaving behind the economy based on agriculture for drills to extract oil and large platforms for the extraction of crude oil.
“In 2022, six investment projects were announced in the country, among which an oil exploration project announced by ExxonMobil for 10 billion dollars stands out,” according to the Economic Commission for Latin America and the Caribbean (ECLAC).
Guyana, a country of 800,000 inhabitants, has tripled its GDP in just four years. For 2021, it was 8,044 billion dollars.
Once again, Guyana recorded the largest inflows of foreign direct investment in the Caribbean, with a total of 4,389 million dollars in 2022, explains the study Foreign Direct Investment in Latin America and the Caribbean 2023.
“Real GDP is expected to continue growing extremely rapidly in 2023 (38.4 percent) and on average 20 percent annually during 2024-28,” commented the International Monetary Fund.
It is expected that gross international reserves will continue to accumulate and oil reserve coverage will strengthen. Today Guyana has the second largest oil reserves in the world and is only behind that of Kuwait.
“New oil discoveries would continue to improve Guyana’s long-term economic prospects and a construction boom would support higher-than-projected near-term growth,” comments the IMF.
“The combination of lower demand due to lower forecast growth in 2024 and higher supply of crude oil, thanks to record production from the United States, Guyana and Brazil, will likely keep oil prices stable despite lower production from the OPEC countries,” adds the IDB.
This is how Guyana grows
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– 2024-04-28 00:43:59
