Guyana’s GDP is expected to rise by 38.2 percent in 2024, according to projections made in the World Bank’s Global Economic Prospects Report, which was released in January 2024. This result has a substantial influence on the Caribbean region’s overall growth prospects in addition to exceeding the International Monetary Fund’s (IMF) December prediction of 26.6%.
The regional growth prediction in the study that includes Guyana and the one that excludes it shows a clear disparity. The Caribbean area is predicted to increase by 4.1 percent in 2024, except Guyana, which “remains in a resource-based boom since the discovery of oil.” Nevertheless, the region’s growth estimate nearly doubles to 7.6 percent when Guyana’s success is taken into account.
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Guyana’s oil industry is primarily responsible for the country’s economic boom. The main cause is the start of the Payara project in November 2023, which is expected to reach 220,000 barrels per day in early 2024. In the first quarter of this year, this project will increase Guyana’s overall oil production capacity to almost 620,000 barrels per day.
Following significant development in 2022, Guyana’s economy was categorized as a high-income economy by the World Bank last year. By utilizing the Atlas technique to calculate gross national income (GNI) per capita, the World Bank group divides economies worldwide into four income groups: low, lower-middle, upper-middle, and high. The main cause of Guyana’s reclassification—which put it on par with nations like Romania and Bulgaria—was an increase in the production of oil and gas, which was exacerbated by rising commodity prices. Guyana’s gross national income (GNI) per capita, which was ranked 67th out of 196 economies by the end of 2022, is predicted to rise significantly if growth statistics for 2023 are taken into account.
The leadership position of President Irfaan Ali of Guyana, who will take on the job of the Caribbean Community’s (CARICOM) rotating chairperson for six months starting on January 1, 2024, adds to this economic story. As the region’s foremost agricultural head of state, President Ali promotes increasing domestic food production as a means of lowering the Caribbean’s food import cost. This strategy complements Guyana’s efforts to increase its agricultural output, which has allowed it to become one of the few Caribbean nations to generate over 50% of its food.
