Guyana has achieved another remarkable feat by attracting the highest foreign direct investment (FDI) inflows in the Caribbean region, reaching an impressive total of $4.389 billion in 2022.
This achievement was unveiled in the Economic Commission for Latin America and the Caribbean (ECLAC)’s 2023 report on Foreign Direct Investment in Latin America and the Caribbean.
The report highlighted that this result closely mirrored the record-breaking inflows witnessed in 2021, with only a marginal decrease of 1.5%. The surge in investments can be attributed to the sustained interest of foreign investors in Guyana’s lucrative hydrocarbon sector, which accounted for an overwhelming 99% of FDI inflows in 2022, despite experiencing a slight 2% decline compared to the previous year. Meanwhile, it noted that investments in the manufacturing sector, comprising a mere 1% of the total, also witnessed a decrease of 9%.
Moreover, the report emphasized that the project announcements made in 2022 by ExxonMobil indicate a continued influx of significant investments in Guyana’s hydrocarbon sector in the forthcoming years.
The report underscored that larger inflows observed in the region during certain years often coincided with the discovery of oil reserves. It cited the example of Guyana, where average FDI inflows in the sector soared from US$6 million per year between 2002 and 2011 to an astounding US$814 million per year from 2012 to 2021. Since then, FDI in the sector has consistently accounted for over 90% of the country’s total inflows.
Guyana’s exceptional achievement in attracting record-breaking FDI inflows highlights its growing prominence as an attractive investment destination in the region. With its flourishing hydrocarbon sector and the support of major international players like ExxonMobil, the country is poised to capitalize on its abundant natural resources and secure a prosperous future.
