Guyana is the fastest growing economy in the world according to a report published by Nasdaq, last week.

The article notes that “with a GDP size of $3.63 billion (2018 Rank: 160), a growth rate of 4.1 per cent in 2018 and 4.6 per cent in 2019, Guyana’s economy is expected to grow by 33.5 per cent and 22.9 per cent in 2020 and 2021, respectively”. The country’s projected growth rate over the period 2018-2021 is 16.3 per cent.

The report further revealed that “Guyana is projected to be among the world’s largest per-capita oil producers by 2025 with an estimated five developments offshore, producing over 750,000 barrels of oil per day”. The Guyana-Suriname Basin, it notes, was ranked second in the world by the US Geological Survey in 2000 among unexplored oil basins at the time.

The article lists seven major oil companies from around the world that have been involved in exploration and drilling in Guyana over the years and informed that ExxonMobil Guyana “plans to begin producing up to 120,000 barrels of oil per day from the Liza Phase 1 development in early 2020” after having made “13 discoveries since 2015”.

Guyana’s GDP in 2017 was composed of industry (15.3 per cent), agriculture (15.4 per cent) and services (69.3 per cent). The industrial sector involves bauxite, and gold mining, sugar and rice milling, among other industries, while agricultural products include fish, rice, sugar cane, edible oils, poultry, pork and beef.

According to the IMF, Guyana’s GDP growth in 2018 was led by the construction and services sector.

Tourism is also a major contributor to the country’s economy. While Guyana does not possess the beaches of many of its Caricom neighbours, tourism is its third-largest export sector. With large areas of uninhabited, dense rainforests, navigable rivers, the world famous Kaieteur Falls and the Rupununi Savanna, Guyana is an attractive ecotourism destination.

This year, at the Sustainable Top 100 Destination Awards in Berlin, Guyana was named the number one ‘Best of Ecotourism’ destination in the world.

“Guyana received a 15.9 per cent increase in arrivals in 2018 of which there was a 21 per cent increase in leisure travel (183,639 total) and a 15 per cent increase in business travel (28,466),” an article published in June of this year by Guyana’s Stabroek News revealed. “It is anticipated that if the current trends continue Guyana will attract more than 500,000 a year as early as 2025, which would reflect nearly doubling visitation over 10 years.”

The article claimed that tourism contributed US$30.1 billion to the South American country’s economy in 2018.

As Guyana prepares for the increased growth of its economy ahead of significant oil production, its government is taking steps to meet the challenges that this will bring.

A recent statement from the IMF published after an official staff visit to Guyana, this year, observed that “infrastructure bottlenecks, skilled labour shortages, and weaknesses in electricity supply are major obstacles to growth” in Guyana.

The statement went on to express support for government initiatives that have been designed to confront such obstacles.

“Staff supports the authorities’ proposed increase in investments to improve access to roads, electricity, and telecommunication services to enhance economic activities, including the hinterland,” it read.

One suggestion that the IMF statement put forward for confronting labour challenges could see the oil-driven expansion of Guyana’s economy benefiting Caricom nationals across the Caribbean.

“To address skills gap and satisfy an expected increase in labour demand, Guyana could adopt more liberal or open immigration policies, including free movement of all categories of workers from other Caricom countries,” the IMF proposed.