Guyanais the smallest country in South America, with only 800,000 inhabitants, on its way to the country with the fastest economic progress in the world.
The World Bank estimates that by the end of this year the growth of Gross Domestic Product (GDP) of Guyana is 25.2%. Over the next five years, total GDP growth is expected to reach 115%.
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This economic phenomenon is due to the oil extraction and export on Guyanese soil.
According to a report published by the International Monetary Fundoil production will continue to grow rapidly as three new approved fields come on stream in Guyana between 2024 and 2027.
This factor would cause the country to grow at an “extremely fast” pace, the report said.
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He tree oil
Guyana currently has 11 billion barrels of oil reservesestimates, about 0.6% of the world total ExxonMobil. And oil production could rise from 390,000 barrels per day this year to more than a million by 2027.
The portal The economist ensures that by 2028 this country will have the 1.1% of the world’s oilwhich corresponds to 1.2 million barrels per day.
According to Juan Pablo Fernández Marín, former executive chairman of the Confederation of distributors and retailers of energy fuelsGuyana currently ranks fourth among oil producers in Latin America and is vying for third place.
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The non-oil sector, on the other hand, is supported by rapid growth public investment program aimed at providing infrastructure for transport, housing and flood management, and increasing human capital.
Spillovers from the oil and construction sectors support growth in the EU service and supply sectorswhile agriculture, mining and quarrying are also performing well.
However, Guyana also has a high level of poverty among its population and lower life expectancy than other countries in the region.
A report from Los Angeles Times explains that the Guyanese authorities do not have sufficient experience or the legal framework to manage revenues from the tree oil, which causes an unequal distribution of wealth.
Therefore, the country must manage profits well and ensure that it does not destabilize its growing economy. (JO)
Source: Eluniverso
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