Exploring The Factors Behind Guyana’s Rising Economic Strength
(Sponsored) A decade ago, the idea that Guyana could become one of the strongest, growing economies on the continent and provide robust, regular GDP growth would’ve been something sneered at by most economists.
In fact, many in Guyana probably would’ve agreed that the small South American nation would’ve remained one of the lesser-performing economies.
However, the discovery of immense oil reserves galvanized the country as both an economic power in South America and a new hub for investment on the continent.
A lot of the Guyanese growth over the last five years stemmed from colossal oil discovery in 2015.
Still, as with many oil-rich nations, the real test begins when the money flows in and how the right choices in local investment could lead to broader prosperity within the country.
An Increasing Spot For Overseas Investment
With great oil reserves comes significant investment, especially from prominent countries overseas.
The US and China have moved into Guyana and want to invest billions of dollars.
It’s the total opposite of what it used to be in Guyana, a country that was much lower down the pecking order, economically speaking, than many countries in South America.
Guyana has made several moves in the past to increase investment. Tourism is one of the most common ways smaller countries look to increase revenue.
Back in the mid-2000s, Guyana made an active push to build casinos and bring in tourists from around South America and further afield to visit the country and see what it was all about.
Although this venture into gambling and casino platforms was a reasonably short-lived idea from the tourist board, real money casino gambling platforms have shown how earmarking the sector and honing in on casino gaming can prove to be a profitable idea for those in the industry.
So, while the Guyanese tourist board might have had the right idea for bolstering international investment through casino gaming, it wasn’t until 2015 that the big players started to come knocking at the door.
World’s Fastest Growing Economy
Any country being dubbed the world’s fastest-growing economy is a significant achievement in itself.
This alone will attract investment from all over the world as companies look to cash in on Guyana’s astonishing rise in GDP since the late 2010s.
Some economists believe that Guyana’s economy will grow by over 100% within the next five years, a monumental statistic.
Obviously, it is a factor in the fact that the country previously had a small presence on the global stage, and it is a small country, so any growth will be higher relative to more prominent countries or economies.
Guyana’s neighbor, Venezuela, is one of the few countries on Earth with more oil than Guyana.
The discovery of such substantial natural resources inevitably attracts some of the world’s most dominant oil companies, with American powerhouses gearing up against each other to get their share of the vast oil discovered within the small South American nation.
Many multinational oil companies have set up in Guyana – including China’s richest oil fund- and are also making their presence known in the region.
Ultimately, the emergence of such hugely wealthy countries and corporations results in highly skilled professionals in the oil industry moving into the area.
This has a knock-on impact—pumping money into local services and investing in the broader economy makes it a more attractive proposition for wealthy oil executives looking to set up shop there.
At the same time, they get their investments off the ground. Extensive exports help to strengthen Guyana economically, strengthening the currency, and meaning that the net outflux of working-age people, which has stemmed the country over the last two decades, could also be coming to an end as well – so it is a very prosperous and exciting time for its residents.
Final Thoughts
It’d be naive not to frame Guyana’s new economic fortunes due to its oil discovery. Without the extensive oil fields found off its coast, the country would not be in the economic position it is currently in.
However, any country with a growing economy always has one element that helps to drive it forward on the world stage. China has become the workshop of the world over the last 20 years, driving colossal growth.
Likewise, India’s sustained huge working population has fueled much of its economic growth.
Any country with a growing economy rather than a shrinking one often gets a lucky break with a considerable export—which is precisely what has happened in Guyana and is helping to put it on the global economic map.
Over the next decade, it will be fascinating to watch how much the Guyanese economy can grow and how the country can use this new wealth to help improve its infrastructure and economy.
With its economy growing at 10 or 12 times the size of some of the world’s most prominent nations, it’s become a hotspot for economists and investors and will continue to be a significant topic of discussion over the next five years.
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