Guyana – World’s Fastest Growing Economy Because of Oil

It was merely eight years ago that ExxonMobil had its first offshore discovery in Guyana. Since then the country has emerged as a major oil producer and exporter. According to the International Monetary Fund, oil production have catapulted Guyana to the position of being the world’s fastest-growing economy during 2023. 

The international government organization has forecast that the country’s gross domestic product will expand by a whopping 37.2% this year which is the highest forecast growth rate globally for a sovereign state. 

Simultaneously, Guyana’s GDP is also expected to expand by an impressive 45.2% during 2024 as petroleum production and industry investment rise further. This is great news for the former British colony, whose President just announced that he wants all families to benefit from oil.

According to the Ministry of Natural Resources, as of the end of February this year, Guyana was pumping 383,000 barrels per day, produced from the Liza oilfield in the Stabroek Block, which has a nameplate capacity of 360,000 barrels per day.

This oil boom is also driving the country’s economy at a rapid rate and will continue to do so for as long as the oil boom continues to gain momentum.

A recent interview with Sam Hinds, Ambassador to the U.S., revealed he expects GDP to double by 2027. Indeed, it is forecast that GDP per capita will double from $6,000 to $12,000 over that period, which based on 2022 IMF data, indicates Guyana will become the fifth wealthiest country in South America, placing it ahead of Brazil.

For 2023 alone, petroleum exports are expected to earn more than $1.6 billion for Georgetown, and that is on top of the $1.1 billion received during 2022. 

The Yellowtail development targets a rated production capacity of 250,000 barrels per day which is expected to come online during 2025. 

Investment in offshore Guyana, now the world’s hottest oil frontier, continues to expand as international energy companies consider how they can buy in. The capital, Georgetown, launched the first-ever licensing round in December 2022, offering 14 offshore blocks, three deepwater and 11 shallow-water, to bidders. Submissions were due to close on April 14, 2023, but that has been delayed until July 2023 to give prospective bidders more time to prepare their submissions and for Georgetown to implement the new regulatory framework and production sharing agreements. 

The auction has attracted considerable interest from energy heavyweights, including Shell, Chevron, and Petrobras. Another oil auction is being considered for 2024 which to drive further investment.

With all attention focused on the once cash-strapped country, GDP is forecasted to expand by an impressive 37%, good news for the government and for the people.