Economy of Guyana

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Economy of Guyana

Downtown Georgetown, Guyana

Currency Guyanese dollar (GYD)

Fiscal year Calendar year

Trade CARICOM, WTO, Prosur, Unasur, Mercosur (associate)
organisations

Country Developing/Emerging[1]
group Upper-middle income economy[2]

Statistics

Population  789,683 (Q1, 2022)[3]

GDP  $14.839 billion (nominal; 2022)

 $33.761 billion (PPP; 2022)[4]

GDP rank 137th (nominal, 2022)

137th (PPP, 2022)

GDP growth 4.1% (2018) 4.7% (2019e)

51.1% (2020f) 8.1% (2021f)[5]
GDP per  $18,745 (nominal; 2022)
capita
 $42,647 (PPP; 2022)[4]
GDP per 54th (nominal, 2022)
capita rank
40th (PPP, 2022)
GDP by sector agriculture: 15.4%

industry: 15.3%

services: 69.3%

(2017 est.)[3]
Inflation (CPI 1.8% (2020 est.)[6]
)
Population 35% (2006 est.)[3]
below poverty
line
Gini 44.6 medium (2007)[3]
coefficient
Human  0.714 high (2021)[7] (108th)
Development
 0.591 medium IHDI (83rd) (2021)[8]
Index
Labour force  299,147 (2021)[9]

 43.3% employment rate (2019)[10]

Labour force N/A
by occupation

Unemploymen   13.5% (2019)[11]

t   11.5% youth unemployment (2021; 15 to 24 year-olds)[12]

Ease-of-doing-  134th (medium, 2020)[13]
business rank

External

Exports $5.721 billion (2021)[3]

Export goods petroleum, sugar, gold, bauxite, alumina, rice, shrimp, molasses, rum, 

timber
Main export  United States (+) 42%
partners
 Singapore (+) 16%

 UAE (+) 6.9%

 United Kingdom (-) 6.9%

 Canada (-) 6.6%
[citation needed]

Imports $4.359 billion (2021)[3]

Import goods manufacture, machinery, petroleum, food
 Main import  Singapore (+) 40%
partners
 United States (-) 20%

 Trinidad and Tobago (+) 8%

 China (+) 6.7%

 Japan (+) 2.6%[citation needed]

[3]

Gross external  $1.38 billion (Q1 2022)[3]

debt

Public finances
Public debt  44% of GDP (2021 est.)[14]
Budget −5.3% (of GDP) (2020)[citation needed]
balance
Revenues 1.002 billion (2017)[3]

Expenses 1.164 billion (2017)[3]

Economic aid $5.8 million (2020)[15]

Credit rating N/A

All values, unless otherwise stated, are in US dollars.

Guyana export treemap

The economy of Guyana is one of the fastest growing in the world with a gross
domestic product (GDP) growth of 19.9% in 2021. [16] In 2022, Guyana had a per
capita gross domestic product of $42,647 and an average GDP growth of 4.2% over the
previous decade.[6][17] Guyana's economy was transformed in 2015 with the discovery of
an offshore oil field in the country’s waters about 120 miles from Georgetown. Crude
oil production started in 2019.[16]

Contents

 1Overview
o 1.1Debt
 2Economic history
o 2.1European settlement and plantation workforce
o 2.2Nationalization
 o 2.3Opening of markets
 3Infrastructure
 4Major economic sectors
o 4.1Agriculture
o 4.2Mining
o 4.3Petroleum
o 4.4Forestry
o 4.5Fishing
 5Data
 6See also
 7References

Overview[edit]
Developed in conjunction with the World Bank and the International Monetary
Fund (IMF), an economic recovery program significantly reduced the government's role
in the economy, encouraged foreign investment, enabled the government to clear all its
arrears on loan repayments to foreign governments and the multilateral banks, and
brought about the sale of 15 of the 41 government-owned (parastatal) businesses. The
cellphone company and assets in the timber, rice, and fishing industries also were
privatized. International corporations were hired to manage the huge state sugar
company, GuySuCo, and the most significant state bauxite mine. An American
company was allowed to open a bauxite mine, and two Canadian companies were
permitted to develop the largest open-pit gold mine in South America. However, efforts
to privatize the two state-owned bauxite mining companies, Berbice Mining Company
and Linden Mining Company have so far been unsuccessful.
Most price controls were removed, the laws affecting mining and oil exploration were
improved, and an investment policy receptive to foreign investment was announced.
Tax reforms designed to promote exports and agricultural production in the private
sector were enacted.
Debt[edit]
Since 1986, Guyana has received its entire wheat supply from the United States on
concessional terms under a PL 480 Food for Peace programme. It is now supplied on a
grant basis. The Guyanese currency generated by the sale of the wheat is used for
purposes agreed upon by the U.S. and Guyana Governments. As with many developing
countries, Guyana is heavily indebted. Reduction of the debt burden has been one of
the present administration's top priorities. In 1999, through the Paris Club "Lyons terms"
and the Heavily Indebted Poor Countries (HIPC) initiative Guyana managed to negotiate
$256 million in debt forgiveness.
In qualifying for HIPC assistance, for the first time, Guyana became eligible for a
reduction of its multilateral debt. About half of Guyana's debt is owed to the multilateral
development banks and 20% to its neighbour Trinidad and Tobago, which until 1986
was its principal supplier of petroleum products. Almost all debt to the U.S. government
has been forgiven. In late 1999, net international reserves were at $123.2 million, down
from $254 million in 1994. However, net international reserves had rebounded to $174.1
million by January 2001.
Guyana's extremely high debt burden to foreign creditors has meant limited availability
of foreign exchange and reduced capacity to import necessary raw materials, spare
parts, and equipment, thereby further reducing production. The increase in global fuel
costs also contributed to the country's decline in production and growing trade deficit.
The decline of production has increased unemployment. Although no reliable statistics
exist, combined unemployment and underemployment are estimated at about 30%.
Emigration, principally to the U.S. and Canada, remains substantial. Net emigration in
1998 was estimated to be about 1.4 percent of the population, and in 1999, this figure
totaled 1.2 percent. After years of a state-dominated economy, the mechanisms for
private investment, domestic or foreign, are still evolving. The shift from a state-
controlled economy to a primarily mixed economic system began under Desmond
Hoyte and continued under PPP/CIVIC governments. The current PPP/C administration
recognizes the need for foreign investment to create jobs, enhance technical
capabilities, and generate goods for export.
The foreign exchange market was fully liberalized in 1991, and currency is now freely
traded without restriction. The rate is subject to change on a daily basis, but the Guyana
dollar has depreciated 17.6% from 1998 to 2000 and may depreciate further pending
the stability of the post-election period.

Economic history[edit]
European settlement and plantation workforce[edit]
The Dutch were the first to settle Guyana in the 1600s, engaging in trade with the
Amerindians and establishing plantations. It was soon discovered that the soil and
climate were ideal for growing sugar cane and slaves from Africa were brought in to
work on these plantations. The colonies of the Guianas were merged and taken into the
British empire. When slavery was abolished, a new wave of labor was brought from
India as indentured servants. Politics was greatly controlled by powerful plantation
owners. Portuguese and Chinese also came into the country as agricultural labor, but
eventually settled into their own specific service industries. [18]
Nationalization[edit]
When Guyana became independent from British rule, there was a great need to ensure
the economy was locally-owned after centuries of foreign involvement. Socialist policies
were of great interest at the time, and early every sector of industry was nationalized
during the Burnham presidency of the 1970s, with new agencies established to support
the poor and working class. Initially, government investment was successful to aid
growth, but lacked management skills and was weak in the face of world commodity
prices and competition. Economic and political strife went hand in hand, and the
population dwindled from resulting waves of emigration. [19]
Opening of markets[edit]
The economy made dramatic progress after President Hoyte's 1989 economic recovery
program. As a result, Guyana's GDP increased 6% in 1991 following 15 years of
decline. Growth was consistently above six percent until 1995, when it dipped to 5.1
percent. The government reported that the economy grew at a rate of 7.9 percent in
1996, 6.2 percent in 1997, and fell 1.3 percent in 1998. The 1999 growth rate was three
percent. The unofficial growth rate in 2005 was 0.5 percent. In 2006, it was 3.2%.

Infrastructure[edit]
Main articles: Electricity in Guyana, Transport in Guyana, and Water supply and
sanitation in Guyana
Infrastructure is primarily concentrated on the coast, and there is difficulty in building up
industries in the hinterlands due to limitations of access and energy.

Major economic sectors[edit]

Agriculture and mining are Guyana's most important economic activities, with sugar,
bauxite, rice, and gold accounting for 70–75 percent of export earnings. However, the
rice sector experienced a decline in 2000, with export earnings down 27 percent
through the third quarter of 2000. Ocean shrimp exports, which were heavily impacted
by a one-month import ban to the United States in 1999, accounted for only 3.5 percent
of total export earnings that year. Shrimp exports rebounded in 2000, representing 11
percent of export earnings through the third quarter of 2000. Other exports include
timber, diamonds, garments, rum, and pharmaceuticals. The value of these other
exports is increasing.
Agriculture[edit]
Main article: Agriculture in Guyana
Sugar is the most historically important product of Guyana, however, the industry has
been in decline due to global competition and other factors. It still is a major export,
along with its related products molasses and rum.[20] Banks DIH and Demerara
Distilleries are the countries' only distillers, but Guyana is world’s 14th largest exporter
of rum.[21]
In 2018, Guyana produced 1.2 million tons of sugar cane, 964 thousand tons of rice,
136 thousand tons of coconut, in addition to smaller productions of other products
agricultural products, such as eggplant (47 thousand tons), pineapple (34 thousand
tons), pepper (37 thousand tons), banana (23 thousand tons), orange (21 thousand
tons), cassava (20 thousand tons), etc.[22]
Mining[edit]
Main article: Mining in Guyana
Mining has surpassed the economic importance of sugar in recent years, making up a
sizable portion of Guyana's GDP. The large-scale gold and bauxite mining operations
are all foreign-owned, but the vast proportion of gold and diamond mining is done by
small and medium-scale miners.
Petroleum[edit]
Main article: Petroleum industry in Guyana
In the 2010's, significant off-shore oil finds by Exxon has renewed interest in foreign
investment in the country. A 2018 estimate predicts Guyana's oilfields are holding over
3.2 billion barrels.[20] Off-shore crude oil extraction began in 2019.
Forestry[edit]
Guyana contains the "largest unspoiled rainforests on the continent." [20] Despite the vast
forests covering the country, the timber industry has remained small due to
infrastructural limitations such as undeveloped roads and lacking or unreliable electricity
to milling operations.[23]
The country also sees large financial contributions from international organizations
looking to protect the forests.
Fishing[edit]
Most of what is fished is consumed locally, but there is a sizable export market for
ocean shrimp. Overfishing of shrimp has led to Atlantic seabob becoming the most
commercially important catch. Commercial fishing is mostly marine, as inland fishing is
mostly attributed to subsistence fishing done by Amerindians. [24]

Data[edit]
The following table shows the main economic indicators in 1980–2022 (with IMF staff
estimates for 2020–2027). Inflation below 3% is in green. [25]
GDP GDP
GDP Inflation Government
GDP per GDP per Unemployment
growth rate debt
Year capita (in Bil.
capita
(in Bil. (in (in Percent)
(in US$ US$nominal) (in US$ (real) (in % of GDP)
US$PPP) Percent)
PPP) nominal)

2,857. 12,552 12,552

1980 2,857.3 1.7% 13.5% 7.1% n/a
3 .9 .9
3,207. 13,948 13,948
1981 3,207.0 1.5% 10.3% 7.6% n/a
0 .7 .7
3,343. 14,404 14,404 -
1982 3,343.8 6.2% 9.7% n/a
8 .9 .9 13.2%
3,634. 15,513 15,513 -
1983 3,634.0 3.2% 9.6% n/a
0 .6 .6 6.8%
4,037. 17,086 17,086
1984 4,037.6 -5% 4.4% 7.5% n/a
6 .4 .4
4,339. 18,199 18,199 -
1985 4,339.0 3.5% 7.1% n/a
0 .3 .3 2.4%
4,579. 19,034 19,034 -
1986 4,579.6 1.9% 7.0% n/a
6 .7 .7 0.9%
 4,855. 20,000 20,000 -
1987 4,855.2 3.5% 6.1% n/a
2 .9 .9 0.9%
5,236. 21,375 21,375 -
1988 5,236.4 4.1% 5.4% n/a
4 .9 .9 3.7%
5,641. 22,814 22,814 -
1989 5,641.6 4.7% 5.2% n/a
6 .0 .0 4.9%
5,963. 23,847 23,847 -
1990 5,963.1 5.4% 5.6% n/a
1 .9 .9 3.1%
6,158. 24,302 24,302
1991 6,158.1 6.1% 4.2% 6.8% n/a
1 .7 .7
6,520. 25,392 25,392
1992 6,520.3 7.8% 3.0% 7.4% n/a
3 .9 .9
6,858. 26,364 26,364
1993 6,858.5 8.2% 2.9% 6.9% n/a
5 .1 .1
7,287. 27,674 27,674
1994 7,287.2 8.5% 2.5% 6.1% n/a
2 .0 .0
7,639. 28,671 28,671
1995 7,639.7 5.0% 2.8% 5.5% n/a
7 .4 .4
8,073. 29,946 29,946
1996 8,073.1 8.0% 2.9% 5.4% n/a
1 .9 .9
8,577. 31,440 31,440
1997 8,577.5 6.2% 2.3% 4.9% n/a
5 .0 .0
9,062. 32,833 32,833 -
1998 9,062.8 1.5% 4.5% n/a
8 .6 .6 1.7%
9,631. 34,496 34,496
1999 9,631.1 2.9% 2.1% 4.2% n/a
1 .2 .2
10,250 36,312 36,312 -
2000 10,250.9 3.3% 3.9% n/a
.9 .7 .7 1.3%
10,581 37,101 37,101
2001 10,581.9 2.3% 2.8% 4.7% 53.1
.9 .4 .4
10,929 37,945 37,945
2002 10,929.1 1.1% 1.5% 5.7% 55.5
.1 .7 .7
11,456 39,405 39,405 -
2003 11,456.4 2.2% 5.9% 58.6
.4 .3 .3 0.6%
12,217 41,641 41,641
2004 12,217.1 1.5% 2.6% 5.5% 66.1
.1 .6 .6
13,039 44,034 44,034 -
2005 13,039.2 3.3% 5.0% 65.4
.2 .2 .2 1.9%
13,815 46,216 46,216 5.1%
2006 13,815.6 3.2% 4.6% 64.2
.6 .8 .8
2007 14,474 47,943 14,474.2 47,943 7.2% 2.8% 4.6% 64.6
 .2 .3 .3
14,769 48,470 48,470
2008 14,769.8 1.6% 3.8% 5.8% 73.4
.8 .5 .5
14,478 47,102 47,102
2009 14,478.0 3.8% -0.3% 9.2% 86.6
.0 .4 .4
15,048 48,586 48,586
2010 15,048.9 3.8% 1.6% 9.6% 95.1
.9 .2 .2
15,599 50,008 50,008
2011 15,599.7 5.3% 3.1% 8.9% 99.5
.7 .1 .1
16,253 51,736 51,736
2012 16,253.9 5.4% 2.0% 8.0% 103.0
.9 .7 .7
16,843 53,245 53,245
2013 16,843.2 3.6% 1.4% 7.3% 104.5
.2 .5 .5
17,550 55,083 55,083
2014 17,550.6 1.7% 1.6% 6.1% 104.5
.6 .5 .5
18,206 56,729 56,729
2015 18,206.0 0.7% 0.1% 5.2% 105.1
.0 .6 .6
18,695 57,839 57,839
2016 18,695.1 3.8% 1.2% 4.8% 107.1
.1 .9 .9
19,479 59,885 59,885
2017 19,479.6 3.7% 2.1% 4.3% 106.2
.6 .7 .7
20,527 62,769 62,769
2018 20,527.1 4.4% 2.4% 3.8% 107.4
.1 .6 .6
21,372 65,051 65,051
2019 21,372.6 5.4% 1.8% 3.6% 108.8
.6 .8 .8
20,893 63,078 63,078 43.5
2020 20,893.7 1.2% 8.0% 134.2
.7 .4 .4 %
22,997 69,231 69,231 19.9
2021 22,997.5 4.6% 5.3% 132.6
.5 .4 .4 %
25,346 76,027 76,027
2022 25,346.8 n/a 7.6% 3.5% 125.5
.8 .0 .0
26,695 79,709 79,709
2023 26,695.1 n/a 2.8% 3.5% 123.7
.1 .6 .6
27,745 82,434 82,434
2024 27,745.5 n/a 2.2% 3.9% 123.9
.5 .4 .4
28,790 85,110 85,110
2025 28,790.4 n/a 2.0% 3.9% 125.0
.4 .4 .4
29,855 87,818 87,818
2026 29,855.8 n/a 1.9% 3.9% 126.2
.8 .1 .1
30,966 90,627 90,627
2027 30,966.0 n/a 2.0% 3.9% 127.4
.0 .5 .5
See also[edit]
 Guyanese dollar
 Bank of Guyana
 List of Guyanese companies
 Economy of South America
 Aurora gold mine
 Omai mine
 Toroparu mine