Guyana’s economy will grow by 38% this year, says the International Monetary Fund (IMF).
First tapped by Exxon Mobil in 2015, offshore oil reserves have made the nation’s economy four times larger in five years.
The IMF sees this rapid expansion continuing.
“The mid-term growth looks brighter than ever,” notes the IMF report.
The agency forecasts three more approved oil fields will begin operations between 2024 and 2027. They expect another field to start up in early 2028.
Some experts believe that Guyana may soon beat Kuwait as the world’s leading oil producer per person.
With only 800,000 residents, the country’s vast oil supplies have a big impact.
Guyana is creating a sovereign wealth fund as South America’s lone English-speaking nation.
The government plans to boost school spending, healthcare, and public works.
Background
Guyana, a small country on South America’s northeastern coast, was largely unnoticed in the global economy until recently.
Its newfound oil reserves have made it a rising star. Before 2015, the country mostly relied on traditional industries like agriculture and mining.
Sugar, rice, and gold were its key exports.
Exxon Mobil’s discovery of offshore oil in 2015 marked a turning point. This American energy giant has since become a vital partner for Guyana.
The oil sector now dominates the nation’s economy with billions of barrels in reserves. The growth is also attracting other international players.
But not everyone is celebrating. Critics worry about the “resource curse,” where nations rich in natural resources fail to diversify.
This can lead to economic instability in the long run. Meanwhile, the government aims to balance this by investing in public services and creating a wealth fund.
This approach, they hope, will ensure long-lasting benefits for the nation.