Guyana, a small South American nation, is expected to have the fastest-growing economy in the world by 2024, with an annual growth rate of 42.8%, up from 33.5% the year before.
Guyana is now ahead of many developed and developing nations because to its remarkable growth, which has been mostly supported by the oil industry. The economy grew by 49.7% in just the first half of 2024, with 67% of this expansion coming from oil extraction.
Situated in the northeastern region of the continent, Guyana is bounded by Suriname, Brazil, Venezuela, and the Atlantic Ocean. It is the third-smallest sovereign state in terms of territory on the continent.
With only 800,000 people living there, Guyana is a small country, but its oil industry has grown to be a major economic engine, generating almost 113.5 million barrels of oil in the first half of 2024. For the year, the industry is expected to increase by 56.4%.
Huge offshore oil deposits, estimated to contain over 11 billion barrels of oil, are the main source of Guyana’s rapid growth, making it the fastest-growing nation in the world for the past two years. The majority of these deposits are held by ExxonMobil and its partners Hess and the China National Offshore Oil Company.
Guyana is predicted to become South America’s second-largest oil producer after Brazil by 2027, producing more oil per person than either Saudi Arabia or Kuwait. It may even overtake Venezuela in this regard.
The substantial influence of oil earnings on the nation’s economy is shown by the Natural Resource Fund, which is expected to surpass $3 billion by the end of 2024. The 2016 finding of oil has significantly changed Guyana’s economic environment.
Driven by oil output that could reach 4,000 barrels per day, potentially bringing Guyana’s GDP to $10 billion by 2030, the economy is predicted to treble by 2027, with GDP growth of 62.3 percent in 2022.
But like other oil-rich countries like Venezuela, Angola, and the Congo, Guyana may encounter difficulties as a result of its rapid development. Common problems include social unrest, political unrest, and the weakening of democratic institutions. Guyana must avoid the so-called “resource curse” and make sure its newfound wealth helps its people.
Building Silica City, a new urban center intended to support technology professionals and other industries, is a major attempt to manage this wealth. With funding from oil profits, Silica City hopes to draw capital to vital sectors including tourism, agriculture, manufacturing, industrial development, and biodiversity services.
