In a remarkable economic surge, Guyana achieved a stunning 43.6% growth in its GDP for 2024, propelled by a significant increase in oil production and exports. This marks the fifth consecutive year of double-digit growth for the Latin American nation, catapulting it to the region’s fifth-largest crude exporter following Brazil, Mexico, Venezuela, and Colombia.
The oil sector has been the primary engine of this economic expansion, with a notable growth rate of 57.7%. This impressive uptick in oil output was driven by the US oil giant ExxonMobil and its consortium, which managed to elevate production from 391,000 barrels per day in 2023 to an average of 616,000 barrels per day in 2024. The strategic upgrades completed at Exxon’s offshore facilities have played a crucial role in this advancement.
Finance Minister Ashni Singh highlighted the robust performance of Guyana’s economy during the presentation of the nation’s $6.63 billion public budget, noting that “Guyana’s economy continues to perform exceptionally well.”
Despite the current boom, the economic growth rate is expected to moderate in 2025, with projections indicating a 10.6% expansion. Interestingly, the non-oil sector is anticipated to drive this growth for the first time in years, with the oil sector’s expansion slowing to 9.5% due to expected decreases in crude prices. The government forecasts an average oil price of $71.9 per barrel for the year, compared to last year’s $78-80 range, which could yield approximately $2.2 billion in revenue from oil exports.
Energy Minister Vickram Bharrat reported that Guyana exported 225 crude cargoes in 2024, with the government handling 28 shipments from its share of Exxon’s production. This represents a significant increase from the 136 cargoes exported in 2023, as recorded by LSEG shipping data. The country’s sweet crude has found favor with European refiners seeking alternatives to Middle Eastern grades, bolstering Guyana’s position in the global oil market.
In 2024, Guyana’s oil revenue soared to $2.57 billion, inclusive of oil sales and $348 million in royalties from Exxon, marking a substantial rise from $1.62 billion in 2023. The anticipated addition of a fourth floating oil production facility this year is projected to further enhance output capacity by 250,000 barrels per day.
As Guyana continues to harness its oil potential, experts emphasize the importance of economic diversification to sustain long-term growth. The anticipated shift in growth drivers from oil to non-oil sectors in 2025 suggests a strategic pivot towards broader economic resilience.
Dr. Roger Hosein, an economist at the University of the West Indies, highlights the importance of this shift, stating, “While the oil sector has been pivotal in Guyana’s rapid growth, diversifying the economic base is critical to mitigate risks associated with fluctuating oil prices and to ensure sustainable development.”
