(Reuters) – Guyana’s government is forecasting the nascent oil producer’s economy, which has recently been among the world’s fastest-growing, will expand by at least 25% per year in the next three to four years, Finance Minister Ashni Singh said on Thursday.
Since oil production was inaugurated in 2019 by a consortium led by U.S. major Exxon Mobil Corp (XOM.N), Guyana’s economy has boomed and the government has proposed devoting an increasing portion of its budget to infrastructure projects.
“From 2020 onwards, we’ve achieved extremely strong real economic growth overall,” Singh said at Guyana’s Energy Conference and Expo in Georgetown. “Over the last three years, the Guyanese economy has tripled in size.”
Guyana’s economy registered a real growth of 62% last year and it has been forecasted to expand by another 25% this year. Revenue from oil exports and royalties is expected to climb 31% to $1.63 billion this year, fueled by an average $83 per barrel price for Guyana’s export basket.
By 2027, energy producers in Guyana expect to surpass 1 million barrels per day of oil and gas output and begin natural gas exports, providing a fresh source of hard currency to the nation.
“The outlook remains extremely favorable,” the minister said. “Real economic growth of 25% over a sustained period is an achievement that is rare in the historic economic context.”
Guyana is doubling efforts to boost its non-oil economy, including the gold mining sector, while maintaining inflation in single digits amid the country’s rapid expansion and limiting external borrowing.
“We’re extremely selective and careful about the new borrowing that we contract, borrowing only for the purposes of making strategic investments and good quality borrowing,” Singh said.
A road to Brazil’s northern region, a bridge to Suriname and another bridge crossing the country’s Demerara river are among infrastructure projects, along with house building and power plants.
According to the public budget, the government’s National Resource Fund will receive $1.6 billion in deposits this year, while withdrawals for funding the country’s capital expenditures will be around $1 billion. By the end of 2026, the fund is expected to have increased its balance to $5.4 billion.