Guyana, a nation previously overlooked due to its low trade activity and remote location, has emerged as the world’s fastest-growing economy in recent years. The turning point came in 2015 when ExxonMobil discovered the Liza-1 well, a significant oil and gas field off Guyana’s coast. This discovery led to extensive drilling and 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 global demand for alternatives to Middle Eastern and Venezuelan oil benefited Guyana’s economy. Since 2020, Guyana has experienced average annual growth rates exceeding 40%. With further oil discoveries, increased output, and geopolitical tensions expected to drive GDP growth to 115% by 2028, Guyana is poised to become the fastest-growing economy globally.
However, with this newfound wealth comes challenges. Research firm BMI predicts that avoiding the “Dutch disease” will be crucial for Guyana’s economic future. This means diversifying beyond just one commodity while ensuring domestic prices do not rise too much due to increased production. By doing so, Guyana can sustain its progress and continue its impressive economic expansion for years to come.
