Guyana’s Economic Surge: Historic 2024 Budget Fuels Record Growth and Investment Opportunities

In February 2024, the National Assembly in Georgetown, Guyana approved the largest annual budget in the country’s history. The whopping U.S. $1.146 trillion budget is about 47% larger than the 2023 budget. This is significant for many reasons. A most notable reason is that less than a decade ago, in 2016, the Stabroek News reported on the McIntyre report that ranked Guyana as the poorest country in the Western Hemisphere, behind Haiti. But just over the last five years poverty rates have declined dramatically.

Some of the key macroeconomic estimates from the 2024 budget include real Gross Domestic Product (GDP) growth of some 34.3%, with the non-oil economy growing at an estimated 11.9%. Agriculture production and natural resources – the extractive industries continue to be the main sources of national income. The agriculture, forestry and fishing sector is projected to grow by 10.4 %. The sugar subsector, one of Guyana’s oldest export products is expected to continue recovery with a projected 66.1% growth. In the extractive industries, the mining and quarrying sector will expand an additional 43.6%. Oil and gas and the support services subsector, which has seen incredible momentum in recent years, are estimated to grow by 44.7%. Gold and bauxite mining are expected to grow by 15.7% and 57.2 % respectively. Significant sums of money are allocated to various social welfare programs and for the provision of public services such as health care and education. Indeed, development of the oil and gas sector is the linchpin to a significant scale-up of investment in infrastructure that catalyzes growth in several other industries.

Oil accounted for about 88% of total exports in 2022. Sugar, gold, bauxite, shrimp, timber, and rice are Guyana’s main non-oil exports. According to the International Trade Administration, Guyana’s macroeconomic environment is stable and presents many opportunities for trade and investment. Amidst the historic growth rates and expansionary fiscal policy, the dollar remains relatively stable, and the foreign exchange rate practically unchanged in 2022 and 2023. Net domestic credit grew by 13.9%. Guyana’s market capitalization also increased by some 46% in 2022. Still, some commercial banking services remain limited or inaccessible to commercial and individual accounts. In the financial assets market, businesses and the public report either ignorance of or difficulty listing on the local stock exchange, the Guyana Stock Exchange. In fact, efforts are underway to host the Caribbean Investment Forum Conference 2024 in Guyana to help attract the requisite expertise and investments to improve local asset market. As government and the private sector partner to bridge the institutional gaps, the country’s double-digit economic growth continues apace. Guyana Tapestry will keep an eye on the economy and continue to provide insightful analysis of issues that intersect with and are of interest to the diaspora.