Economy of Guyana
This article needs additional citations for verification. (December 2022) |
(associate) | |
Country group |
|
---|---|
Statistics | |
Population | 791,739 (Q1, 2023)[3] |
GDP | |
GDP rank | |
GDP growth | |
GDP per capita | |
GDP per capita rank | |
GDP by sector |
|
6.0% (2023 est.)[6] | |
Population below poverty line | 35% (2006 est.)[3] |
44.6 medium (2007)[3] | |
Labour force | |
Labour force by occupation | N/A |
Unemployment | |
External | |
Exports | $5.721 billion (2021) timber, railway shipping containers |
Main export partners |
|
Imports | $6.661 billion (2021) machinery, food |
Main import partners |
|
Gross external debt | $1.38 billion (Q1 2022)[3] |
Public finances | |
44% of GDP (2021 est.)[3] | |
−5.3% (of GDP) (2020)[citation needed] | |
Revenues | 1.002 billion (2017)[3] |
Expenses | 1.164 billion (2017)[3] |
Economic aid | $5.8 million (2020)[11] |
N/A | |
All values, unless otherwise stated, are in US dollars. |
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.
Overview
Developed in conjunction with the
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
Since 1986, Guyana has received its entire wheat supply from the United States on concessional terms under a PL 480
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 totalled 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
The
Economic history
European settlement and plantation workforce
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 labour 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 labour, but eventually settled into their own specific service industries.[13]
Nationalization
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 nearly 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.[14]
Opening of markets
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
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
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
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.
In 2018, Guyana produced 1.2 million tons of
Mining
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
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.[15] Off-shore crude oil extraction began in 2019.
Forestry
Guyana contains the "largest unspoiled rainforests on the continent."[15] 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.[18]
The country also sees large financial contributions from international organizations looking to protect the forests.
Fishing
Most of what is fished is consumed locally, but there is a sizable export market for ocean shrimp. Overfishing of shrimp has led to
Data
The following table shows the main economic indicators in 1980–2028 (with IMF staff estimates for 2021–2028). Inflation below 3% is in green.[20]
Year | GDP
(in Bil. US$PPP) |
GDP per capita
(in US$ PPP) |
GDP
(in Bil. US$nominal) |
GDP per capita
(in US$ nominal) |
GDP growth
(real) |
Inflation rate
(in Percent) |
Unemployment
(in Percent) |
Government debt
(in % of GDP) |
---|---|---|---|---|---|---|---|---|
1980 | 1.88 | 2,421.5 | 0.84 | 1,101.9 | -2.1% | 14.1% | 7.1% | n/a |
1981 | 2.07 | 2,711.7 | 0.81 | 1,055.8 | 0.6% | 22.2% | 7.6% | n/a |
1982 | 2.01 | 2,625.2 | 0.69 | 904.9 | -8.9% | 20.6% | 9.7% | n/a |
1983 | 1.85 | 2,421.5 | 0.70 | 921.5 | -11.5% | 15.3% | 9.6% | n/a |
1984 | 1.95 | 2,574.7 | 0.65 | 861.1 | 2.1% | 25.1% | 7.5% | n/a |
1985 | 2.02 | 2,682.4 | 0.70 | 924.3 | 0.4% | 15.0% | 7.1% | n/a |
1986 | 2.06 | 2,751.3 | 0.79 | 1,053.7 | -0.2% | 7.9% | 7.0% | n/a |
1987 | 2.11 | 2,841.5 | 0.73 | 982.3 | -0.1% | 28.7% | 6.1% | n/a |
1988 | 2.05 | 2,790.8 | 0.83 | 1,125.9 | -6.0% | 33.9% | 5.4% | n/a |
1989 | 2.03 | 2,791.0 | 0.83 | 1,146.2 | -4.9% | 89.5% | 5.2% | n/a |
1990 | 2.04 | 2,831.7 | 0.69 | 951.0 | -3.0% | 64.3% | 5.6% | n/a |
1991 | 2.24 | 3,112.5 | 0.74 | 1,036.9 | 6.0% | 103.1% | 6.8% | n/a |
1992 | 2.46 | 3,429.4 | 0.82 | 1,145.8 | 7.8% | 26.7% | 7.4% | n/a |
1993 | 3.73 | 3,789.2 | 1.00 | 1,393.0 | 8.2% | 8.4% | 6.9% | n/a |
1994 | 3.02 | 4,180.9 | 1.18 | 1,626.9 | 8.5% | 12.4% | 6.1% | n/a |
1995 | 3.24 | 4,459.7 | 1.33 | 1,832.4 | 5.1% | 12.2% | 5.5% | n/a |
1996 | 3.56 | 4,882.5 | 1.50 | 2,048.5 | 8.0% | 7.1% | 5.4% | n/a |
1997 | 3.85 | 5,245.1 | 1.59 | 2,161.6 | 6.2% | 3.6% | 4.9% | 101.4% |
1998 | 3.83 | 5,192.4 | 1.50 | 2,035.9 | -1.7% | 4.6% | 4.5% | 108.0% |
1999 | 4.00 | 5,400.8 | 1.49 | 2,010.8 | 3.0% | 7.5% | 4.2% | 97.1% |
2000 | 4.03 | 5,434.1 | 1.50 | 2,017.2 | -1.3% | 6.1% | 3.9% | 97.2% |
2001 | 4.22 | 5,673.3 | 1.50 | 2,023.6 | 2.3% | 2.6% | 4.7% | 104.6% |
2002 | 4.33 | 5,828.4 | 1.56 | 2,093.0 | 1.1% | 5.4% | 5.7% | 105.1% |
2003 | 4.39 | 5,909.2 | 1.59 | 2,144.1 | -0.7% | 6.0% | 5.9% | 95.6% |
2004 | 4.58 | 6,116.0 | 1.66 | 2,333.0 | 1.6% | 4.7% | 5.5% | 91.8% |
2005 | 4.63 | 6,233.0 | 1.71 | 2,305.9 | -1.9% | 6.9% | 5.0% | 90.7% |
2006 | 5.02 | 6,741.1 | 1.90 | 2,551.8 | 5.1% | 6.7% | 4.6% | 74.5% |
2007 | 5.51 | 7,389.4 | 2.23 | 2,982.2 | 7.0% | 12.2% | 4.6% | 47.0% |
2008 | 5.73 | 7,659.5 | 2.49 | 3,329.6 | 2.0% | 8.1% | 5.8% | 47.6% |
2009 | 5.96 | 7,932.6 | 2.60 | 3,457.4 | 3.3% | 3.0% | 9.2% | 51.7% |
2010 | 6.29 | 8,356.6 | 2.89 | 3,837.3 | 4.4% | 4.3% | 9.6% | 52.5% |
2011 | 6.77 | 8,958.3 | 3.33 | 4,402.8 | 5.4% | 4.4% | 8.9% | 51.2% |
2012 | 7.92 | 10,443.7 | 4.06 | 5,360.3 | 5.0% | 2.4% | 8.0% | 44.3% |
2013 | 8.37 | 10,998.3 | 4.17 | 5,476.7 | 3.7% | 1.9% | 7.3% | 41.1% |
2014 | 8.36 | 10,942.8 | 4.13 | 5,402.7 | 1.7% | 0.7% | 6.1% | 38.3% |
2015 | 8.59 | 11,204.6 | 4.28 | 5,580.0 | 0.7% | -0.9% | 5.2% | 41.8% |
2016 | 8.71 | 11,268.4 | 4.48 | 5,796.8 | 3.8% | 0.8% | 4.8% | 43.8% |
2017 | 9.31 | 11,964.6 | 4.75 | 6,104.2 | 3.7% | 1.9% | 4.3% | 42.9% |
2018 | 9.95 | 12,725.0 | 4.79 | 6,120.5 | 4.4% | 1.3% | 3.8% | 47.0% |
2019 | 10.68 | 13,605.8 | 5.17 | 6,594.4 | 5.4% | 2.1% | 3.6% | 43.6% |
2020 | 15.52 | 19,717.1 | 5.47 | 6,952.7 | 43.5% | 1.2% | 8.0% | 51.1% |
2021 | 19.47 | 24,661.7 | 7.66 | 9,702.5 | 20.1% | 3.3% | 5.3% | 43.2% |
2022 | 33.80 | 42,698.9 | 14.52 | 18,342.3 | 62.3% | 6.5% | 3.5% | 27.8% |
2023 | 48.16 | 60,648.1 | 16.31 | 20,539.9 | 37.2% | 6.6% | 3.5% | 29.8% |
2024 | 71.54 | 89,924.7 | 22.01 | 27,641.2 | 45.3% | 5.5% | 3.9% | 24.2% |
2025 | 75.38 | 94,370.1 | 22.63 | 28,330.0 | 3.4% | 5.0% | 3.9% | 24.1% |
2026 | 104.9 | 130,912.7 | 29.58 | 36,919.5 | 36.6% | 5.0% | 3.9% | 18.9% |
2027 | 110.4 | 137,334.8 | 30.46 | 37,907.2 | 3.3% | 5.0% | 3.9% | 18.8% |
2028 | 116.2 | 144,160.3 | 31.43 | 38,998.6 | 3.3% | 5.0% | 3.9% | 18.6% |
See also
- Suriname-Guyana Chamber of Commerce
- Guyanese dollar
- Bank of Guyana
- List of Guyanese companies
- Economy of South America
- Aurora gold mine
- Omai mine
- Toroparu mine
- Petroleum exploration in Guyana
References
- ^ "World Economic Outlook Database, April 2019". IMF.org. International Monetary Fund. Retrieved 29 September 2019.
- ^ "World Bank Country and Lending Groups". datahelpdesk.worldbank.org. World Bank. Retrieved 29 September 2019.
- ^ a b c d e f g h i j k l m "The World Factbook". CIA.gov. Central Intelligence Agency. Retrieved 10 February 2019.
- ^ a b c d e "Report for Selected Countries and Subjects: April 2023". imf.org. International Monetary Fund.
- ^ a b c "The outlook is uncertain again amid financial sector turmoil, high inflation, ongoing effects of Russia's invasion of Ukraine, and three years of COVID". International Monetary Fund. April 11, 2023.
- ^ "World Economic Outlook Database, April 2020". IMF.org. International Monetary Fund. Retrieved 21 November 2022.
- ^ "Human Development Index (HDI)". hdr.undp.org. HDRO (Human Development Report Office) United Nations Development Programme. Retrieved 21 November 2022.
- ^ "Inequality-adjusted Human Development Index (IHDI)". hdr.undp.org. HDRO (Human Development Report Office) United Nations Development Programme. Retrieved 21 November 2022.
- ^ "Labor force, total - Guyana". data.worldbank.org. World Bank. Retrieved 11 September 2022.
- ^ "Employment to population ratio, 15+, total (%) (national estimate) - Guyana". data.worldbank.org. World Bank. Retrieved 11 September 2022.
- ^ "Net official development assistance and official aid received (current US$) – Guyana". OECD. Retrieved September 12, 2022.
- ^ a b "The Five Fastest Growing Economies in the World, October 2020". Nasdaq.com. Nasdaq. Retrieved 14 December 2020.
- ^ "Guyana - HISTORY OF THE ECONOMY". countrystudies.us. Retrieved 2020-12-04.
- ^ "Guyana - HISTORY OF THE ECONOMY - Postindependence". countrystudies.us. Retrieved 2020-12-04.
- ^ a b c "South America :: Guyana — The World Factbook - Central Intelligence Agency". www.cia.gov. Retrieved 2020-12-04.
- ^ "Guyana's Rum Industry on an economic high". Guyana Chronicle. Retrieved 2021-01-20.
- ^ Guyana production in 2018, by FAO
- ^ "Guyana - Forestry". countrystudies.us. Retrieved 2020-12-04.
- ^ "FAO Fisheries & Aquaculture - Country Profile". www.fao.org. Retrieved 2020-12-04.
- ^ "Report for Selected Countries and Subjects". International Monetary Fund (IMF). Retrieved 2023-05-23.