Guyana experiences rapid economic growth driven by offshore oil

Guyana is experiencing unprecedented economic expansion driven by the scaling of offshore oil production. Since 2020, the country has recorded exceptionally rapid and sustained GDP growth, setting it apart from other Caribbean economies. In 2023, real GDP increased by 33.8 percent, followed by a 43.8 percent increase in 2024. Projections suggest continued high growth rates, with estimates of 19.3 percent for 2025 and 23.7 percent for 2026.

The World Bank notes that this oil-driven boom has resulted in rising fiscal revenues, improved external balances, and a declining public debt-to-GDP ratio. This performance creates a widening gap between resource-abundant commodity exporters like Guyana and Suriname and tourism-dependent island economies that face more moderate growth due to high energy and transportation costs.

Despite the rapid growth, challenges remain regarding the state's capacity to manage this expansion. The World Bank emphasizes the need for stronger public investment management, increased institutional capacity, and policies to ensure that oil wealth translates into broad-based and inclusive development for all citizens.