Non-oil economy’s share of GDP projected to increase – GOGEC

…lauds Govt’s efforts to diversify economy, transformational energy projects\

The non-oil economy’s share of the gross domestic product (GDP) has for the most part taken a back seat to the oil and gas sector over the past few years. However, the Guyana Oil and Gas Energy Chamber (GOGEC) is optimistic that this will change as manufacturing takes off.
GOGEC recently held its Annual Awards and Induction Ceremonial Dinner, during which the chamber’s President, Manniram Prashad, spoke about the private sector’s expectations for Guyana’s economy, which has for the most part been dominated by oil since production started.

“With investments being undertaken to diversify the economy by the Government, we expect the non-oil sectors to continue recording robust growth. And will in the long term, account for a higher share of our GDP.”
“We saw what happened with our neighbours when they discovered oil. They abandoned the agriculture sector. And they started importing everything. Now they’re in trouble. We don’t have to reinvent the wheel, just learn from their mistakes,” Prashad further said.
Mention was made of all the initiatives being undertaken by the People’s Progressive Party/Civic (PPP/C) Government in the area of renewable energy, including the Amaila Falls Hydropower Project (AFHP), for which proposals are currently being sought.

“Every single country in the Caribbean is looking to Guyana for guidance. And just imagine with the Amaila (Falls), the Gas-to-Shore Project, if the cost of energy can be reduced by 50 per cent, our manufacturing sector will thrive tremendously.”
“Instead of people from the Caribbean purchasing our raw materials and manufacturing and selling it back to us, we can manufacture here because we will have cheaper energy. So, this initiative, the Amaila Falls and gas-to-energy is transformational,” Prashad further said.
During the event, several companies and individuals were inducted into the oil and gas sector. These include Sol Guyana Inc and TLC Guyana Inc.
In addition, NRG Holding Inc was honoured for its contribution to the oil and gas section. NRG Holding Inc is a Guyanese consortium that is presently constructing the US$300 million Shorebase facility for ExxonMobil at Vreed-en-Hoop.
Meanwhile, in October, the International Monetary Fund (IMF) released a report showing that Guyana will record 38.4 per cent of real Gross Domestic Product (GDP) growth, against a regional growth average of 2.3 per cent.

Guyana has already recorded a whopping 59.5 per cent real economic growth in the first half of 2023, driven not only by the oil and gas sector but also the non-oil economy which has been growing for successive years.
The gold mining and quarrying sector is estimated to have grown by 89.9 per cent in the first half of the year, driven by increased output. The report explains that these increases outweighed the declines observed in the gold mining and bauxite mining subsectors.
Meanwhile, agriculture, forestry and fishing sectors are estimated to have expanded by 7.6 per cent in the first half of the year. This was driven by growth in all subsectors – namely other crops, rice growing, livestock, fishing, forestry, and sugar.

Guyana’s rapid economic expansion saw the country recording a 62.3% growth in 2022 – placing the country amongst the fastest-growing economies globally. This rapid growth was attributed by the Government to the oil and gas sector, which expanded by 124%. Meanwhile, Guyana’s non-oil economy also saw a very strong expansion of 11.5%.
When it comes to addressing the country’s energy woes, the People’s Progressive Party/Civic Government, in staying true to its promise, has reinvited Requests for Proposals (RFP) under a Build-Own-Operate-Transfer (BOOT) model, to advance the development of the long-awaited AFHP.
According to published documents from the Prime Minister’s Office, the project will integrate and expand Guyana Power and Light’s national grid capacity to include Linden, Region 10 (Upper Demerara-Upper Berbice).
Interested parties must submit one proposal based on a BOOT model, which includes the construction of a hydro dam, transmission lines from Amaila to Linden plus sub-stations at the Amaila site as well as upgrades and completion of roads and bridges to the site.
There are also plans for the gas-to-energy project, which received a $43.3 billion allocation in Budget 2023. The project will see the construction of an integrated Natural Gas Liquid (NGL) plant and the 300-megawatt (MW) combined cycle power plant at Wales, West Bank Demerara (WBD). Additionally, 225 kilometres of pipeline will be laid from the Liza field in the Stabroek Block offshore Guyana, where Exxon and its partners are currently producing oil.