From Overlooked to Fastest-Growing: Guyana’s Rise as a World Economic Powerhouse
Guyana, once a nation overlooked for its low trade activity and remote geographical location, has emerged as the world’s fastest-growing economy in recent years. The turning point for Guyana came in 2015 when ExxonMobil discovered the Liza-1 well, a significant oil and gas field off Guyana’s coast. With partners like Hess Guyana Exploration and CNOOC Petroleum Guyana, ExxonMobil embarked on exploring the larger Stabroek Block area. Extensive drilling led to the discovery of several massive oil and gas fields, boosting the region’s potential for output.
As oil prices surged post-Covid-19 pandemic and global demand for alternatives to Middle Eastern and Venezuelan oil increased, Guyana’s economy reaped the benefits of its oil discoveries. With average annual growth rates exceeding 40% since 2020, Guyana is on track to continue its impressive economic expansion. Research firm BMI predicts that further oil discoveries, increased output, and geopolitical tensions will drive Guyana’s GDP growth to 115% by 2028, making it the fastest-growing economy globally.
However, there are challenges ahead. Avoiding the pitfalls of the “Dutch disease,” where reliance on a single commodity stifles other sectors due to rising domestic prices, will be crucial for Guyana’s economic future. Despite this challenge, with its booming oil production and increasing export profitability, it is safe to say that Guyana has come a long way from being overlooked as an economy worth watching to becoming one of the fastest-growing economies in the world today.
