Guyana, once considered the forgotten nation of South America, has experienced a remarkable transformation in recent years. Historically known for low levels of trade activity and its remote geographical location, Guyana is now the world’s fastest-growing economy. Fueled by booming oil production and increasing export profitability, the country’s GDP grew by an astonishing 38% in 2023, following a 63% increase in 2022.
The turning point for Guyana came in 2015 when ExxonMobil discovered the Liza-1 well, a massive oil and gas field off the country’s Atlantic shore. This discovery, along with other significant finds in the Stabroek Block region, has propelled Guyana into the spotlight of the global oil industry. As oil prices surged post-Covid-19 pandemic, Guyana’s economy took off, growing by an average of more than 40% per year since 2020.
Looking ahead, Guyana’s GDP is projected to grow by 115% by 2028, the fastest rate in the world. This growth is expected to come from additional oil discoveries, rising output, and high geopolitical tensions. However, the challenge for Guyana will be to ensure that this economic boom translates into sustained progress for its population. One potential threat is the risk of “Dutch disease,” where a boom in a single commodity like oil can lead to a decline in other sectors of the economy due to rising domestic prices.
With the world’s eyes on Guyana’s unprecedented growth, the country must navigate the challenges of managing its newfound oil wealth to benefit its people and ensure long-term economic stability.