Guyana’s nominal GDP almost triples to $3.1 trillion in 2 years

…as economy projected to grow at 25% annually over next 3 years

Guyana’s nominal Gross Domestic Product (GDP) has almost tripled in the space of two years, moving from $1.1 trillion in 2020 to $3.1 trillion at the end of 2022, President Dr Irfaan Ali told a press conference Wednesday.
While he said this was largely due to the country’s petroleum industry, it is also linked to his Administration’s prudent fiscal management.
“Despite challenges, Guyana managed to grow its economy and put measures in place to reduce the burden of elevated prices on citizens while at the same time, prudently managing financial resources.”

Noting that Guyana has cemented its place as the fastest-growing economy in the world, the Head of State further boasted that the country was projected to grow at an average of 25 per cent annually from 2023 to 2026.
He indicated that these numbers were impressive, when the global economic growth estimates are examined.
“The world is estimated to grow at 2.8 per cent in 2023. Advanced economies are expected to grow at 1.3 per cent; Latin America and the Caribbean, 1.6 per cent; the Caribbean tourism-dependent countries at 3.2 per cent; Caribbean commodity exports, 18.7; and Guyana is expected to grow at 25.1 per cent,” the President said.
“Guyana’s non-oil growth is now projected at 7.9 per cent this year, building on the 11.5 per cent growth recorded last year.”
Moreover, the Guyanese leader disclosed that the country’s debt-to-GDP ratio stood at 24.6 per cent at the end of 2022, down from 38.9 per cent a year prior. “…demonstrating Government’s commitment to prudent fiscal management of the country’s resources,” Ali expressed.
In terms of inflation, he revealed that the world estimate is 6.1 per cent; Latin America and the Caribbean, 11.8 per cent, and Guyana is estimated at 3.8 per cent.

FDI inflows
Meanwhile, Guyana has also recorded the highest Foreign Direct Investment (FDI) inflows in the Caribbean, with President Ali boasting that this was indicative of investors’ confidence in the country and its leadership.
The United Nations’ Economic Commission for Latin America and the Caribbean (ECLAC) “Foreign Direct Investment in Latin America and the Caribbean” 2023 report stated that Guyana recorded FDI inflows for 2022 totalling US$4.389 billion.
“FDI is an important indicator of the confidence that investors have in the country. So, we are not only the leading destination for FDI, it tells a lot about the confidence which the sophisticated and international investor has in the country, the leadership, the direction in which the country is going,” Ali told reporters. “
The Head of State also spoke about the benefits this ranking brings to the country. “We have eight hotels under construction right now where work would have started. On completion of those hotels, you’re talking about thousands of new jobs being created, that is thousands of families who now have more disposable income. When the call centres increase their capacity by a thousand workers, that’s a thousand persons now who have additional income coming in…,” he noted.
“You’ll have more spending in the economy which means you’ll have more demand for service, more demand for service increases supply, supply of services increases revenue, increased revenue triggers spending, so it’s a cycle,” he added.

Employment
Meanwhile, in relation to employment opportunities, President Ali estimates that by 2025, Guyana would need some 6000 new employees in the hospitality sector, judging from the number of hotels that will be established, with approximately 2000 health workers needed in various sectors.
He noted also that many local companies were losing expert workers to the oil and gas companies, thus leading to a demand for skilled labour in traditional sectors.
Additionally, with the entrance of new companies in the areas of specialised warehousing and fabrication, among others, thousands of employees would be required to fill those jobs.
The Head of State said while the government was creating the enabling environment to attract foreign and local investments in key sectors, it was simultaneously building the human resource capacity to match the rapid development unfolding daily. (G11)