In recent years, Guyana has experienced a rapid growth spurt, becoming the world’s fastest-growing economy. This transformation was fueled by the booming oil production and increasing export profitability. In 2015, 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 began 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.
The surge in oil prices post-Covid-19 pandemic and increased global demand for alternatives to Middle Eastern and Venezuelan oil propelled Guyana’s economy forward. Since 2020, Guyana has experienced impressive annual growth rates exceeding 40%. As research firm BMI predicts 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, this newfound prosperity presents a challenge for Guyana – avoiding the pitfalls of the “Dutch disease.” The reliance on a single commodity can stifle other sectors due to rising domestic prices. It is crucial for Guyana’s economic future that sustained progress is made with this newfound wealth while diversifying its economy to prevent this from happening.
