Oil wealth: Gigantic economic growth for Guyana

Massive oil deposits off the coast of Guyana could transform the wealth of the small South American country.

Economic growth in the state on South America’s Atlantic coast, which borders Brazil to the south and west, Venezuela to the northwest, and Suriname to the east, could reach nearly 60% this year.

On Tuesday, September 27, the International Monetary Fund (IMF) urged cautious policies even as the tiny South American nation benefits from rising oil production.

“The overall real GDP growth rate is estimated at 57.8% in 2022,” the IMF stated.

It expects oil production to more than double this year and continue to grow at an average pace of 30% per year through 2026.

Back in September, the Guyana government predicted total growth of 56% in 2022 and non-oil growth of 9.6%.

The discovery of oil offshore Guyana by a consortium led by “Exxon Mobil Corp” (XOM.N) in 2015 has made the small Caribbean country an emerging oil power.

According to the IMF, an estimated 11 billion barrels of recoverable oil have been discovered, one of the highest per capita levels in the world.

Guyana exports most of its oil to Europe as the region seeks alternatives to Russian crude and expects to earn about US$1.25 billion this year from selling its oil interests and royalties.

With information from Latina Press