South America’s economy is expanding at the quickest rate in the globe, not that of Asia or Africa. Guyana is a tiny country with less than a million people. In 2024, it had an astounding 42.8% yearly growth, up from 33% the previous year. The country’s economy has greatly expanded in recent years.
For two years running, Guyana has been the fastest-growing nation in the world due to the uncovering of one of the greatest oil reserves in decades.
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Suriname borders Guyana on the east, Venezuela on the west, Brazil on the south and southwest, and the Atlantic Ocean on the north. Guyana, the sole English-speaking nation in South America, has a geographical area of 83,000 square miles, making it one of the least populous countries on Earth.
It is estimated that Guyana has oil reserves of 11–20 billion barrels. From January to June of this year, the nation produced almost 113.5 million barrels of oil, with average daily production hitting 624,000 barrels. This year, the nation’s oil exports are predicted to bring in around US$16.8 billion.
By 2027, the South American country is expected to generate more oil per person than Kuwait or Saudi Arabia. Additionally, it is expected to overtake Venezuela as the continent’s second-biggest oil production, behind Brazil.
Guyana’s GDP per capita has experienced exponential growth; a decade ago, it was US$5,400; a decade later, it is now US$26,590; the IMF expects it to rise to US$38,680 by 2029. The country’s economy grew by 49.7% in the first half of 2024, with the oil sector accounting for 67% of that growth. The GDP is currently at US$21.18 billion in current prices. The International Monetary Fund (IMF) expects language proficiency to reach US$31.27 billion by 2029.
Guyana has also been trying to make money from its downstream energy industry this year, especially from gas. By the end of 2024, the nation’s Natural Resource Fund should have grown to more than $3 billion.
Some of Guyana’s neighbors, especially Venezuela, have shown jealousy over the country’s wealth. Huge oil deposits found in Guyana have reignited a long-standing territorial conflict between the two nations over the Essequibo area.
Essequibo was formerly a part of Venezuela but was progressively absorbed by the British Crown into its colony of Guyana. Comprising seventy-five percent of Guyana’s landmass, the area is thought to contain a sizable amount of the nation’s enormous oil reserves.
To settle the territorial issue, the Venezuelan government organized a vote in December 2023 over whether to accept the authority of the International Court of Justice. Voters overwhelmingly answered “yes” to a poll that specifically questioned if they wanted Venezuela to possess the territory.
Many in the area were afraid that Venezuela would invade Guyana as a result of this referendum, which caused a diplomatic crisis. Guyana’s connections with the United States, which is also embroiled in the war because of its oil interests and tense relationship with the Maduro dictatorship, have strengthened as a result of these worries.
ExxonMobil holds a controlling stake in the consortium responsible for exploiting the offshore oil reserves of Guyana, which total over 11 billion barrels. Included in the cooperation are Hess and the China National Offshore Oil Company.
Washington pledged to strengthen Guyana’s military capabilities with instruction, exercises, and equipment as Secretary of State Antony Blinken reiterated American acceptance of Guyana’s sovereignty over Essequibo. Only 5,000 men make up Guyana’s armed forces.
