Once considered a forgotten country in South America due to historically low levels of trade activity and geographically remote location, Guyana has transformed over the past two years into the world’s fastest growing economy. . And it looks like it will continue to grow at an impressive pace in the coming years.
Boosted by booming oil production and increasing export profitability, Guyana’s GDP grew by an impressive 38% in 2023. This follows an even more significant 63% increase in 2022 as Guyana’s economy begins to rise to prominence on the world stage.
Things began to change in this country of 800,000 people in 2015, when ExxonMobil announced the discovery of the Liza-1 well, a huge oil and gas field off Guyana’s Atlantic coast. Impressed by the reservoir’s potential, the Houston-based giant is working with the local government and companies such as Hess Guyana Exploration and CNOOC Oil Guyana to develop the larger area known as the Stabroek Block. Focused on exploration.
Drilling to 18,000 feet below sea level, the consortium also discovered several other large oil and gas fields, significantly increasing the region’s projected production. “The Stabroek field may be one of the most unprecedented exploration fields in history,” said Schreiner Parker, senior vice president and head of Latin America and the Caribbean at energy research firm Rystad Energy. To tell.
The Liza 1 oil well discovery puts Guyana’s economy back on track and average growth as oil prices soar in the aftermath of the coronavirus pandemic and the US and Europe seek alternatives to oil from the Middle East and Venezuela. The rate was higher than above. 40% per year from 2020 onwards.
Looking ahead, global research firm BMI predicts that further oil discoveries, increased production and rising geopolitical tensions will drive Guyana’s GDP growth to a further 115% by 2028, making it the fastest in the world. are doing. This poses the welcome challenge of translating the benefits of the country’s newly discovered oil into sustainable progress for its people. But to get there, we need to avoid “Dutch disease,” the tendency for booms associated with a single commodity to suppress activity in other domestic resources due to an overall increase in domestic prices.