Guyana’s economy has showcased remarkable growth in 2024, with a real Gross Domestic Product (GDP) increase of 49.7% in the first half of the year. This robust economic expansion is primarily attributed to the oil and gas sector, which continues to drive the nation’s economic development. However, strong performance across various non-oil sectors has also contributed to this growth, highlighting a more diversified economic landscape.
According to the half-year report released by the Finance Ministry today, the oil and gas industry remains the linchpin of Guyana’s economic growth, with a substantial 67.1% increase in the first half of 2024. This growth is driven by heightened crude oil production, particularly following the startup of the Prosperity Floating Production Storage and Offloading (FPSO) vessel. The sector is on track to produce approximately 228 million barrels of oil by the end of the year, translating to an annual growth projection of 56.4%.
The agriculture sector experienced mixed outcomes, with overall growth at 8.7% in the first half of the year. The rice-growing subsector saw a significant increase of 17.9%, boosted by favorable weather conditions. In contrast, the sugar industry faced a severe contraction of 60.4% due to ongoing impacts from past weather challenges. Nevertheless, the forestry and fishing sectors expanded, contributing positively to the overall agricultural growth.
Beyond oil, the mining and quarrying sector exhibited robust performance, expanding by 64.3% during the first half of 2024. This increase was propelled by substantial growth in ‘other mining’ activities, particularly sand and stone extraction, driven by heightened construction activity across the country.
However, the gold and bauxite mining subsectors faced declines, with gold production falling by 10.3% due to reduced declarations from small- and medium-scale producers, and bauxite contracting by 20% due to marketing and operational challenges.
The manufacturing sector grew by 27.5%, fueled by increases in the production of rice and other manufactured goods, such as fabricated metal products and non-metallic mineral products. This growth is closely linked to the booming construction industry and the rising demand from the oil and gas sector. Despite this, the sugar manufacturing subsector saw a sharp decline, mirroring the challenges faced in sugar production.
The construction industry is one of the fastest-growing sectors in Guyana, expanding by an impressive 43.7% in the first half of 2024. The sector’s growth is supported by extensive public and private investments in infrastructure projects, including roads, bridges, and housing developments. The government’s Public Sector Investment Programme (PSIP) and investments linked to the burgeoning oil and gas sector have played a pivotal role in driving this expansion.
The services sector, which encompasses a broad range of activities, grew by 7.3%. Key drivers included administrative and support services, financial and insurance activities, and transport and storage. The growth in transport and storage services was particularly notable, fueled by increased passenger and cargo transport linked to the expanding construction and retail sectors.
Looking ahead, Guyana’s economic outlook remains positive, with an overall GDP growth projected at 42.3% for the entire year. This projection reflects sustained momentum in both the oil and non-oil sectors, with non-oil GDP expected to grow by 11.8%. The agricultural, construction, and service sectors are anticipated to continue their positive trajectories, albeit with some challenges. The government’s proactive measures to diversify the economy and invest in various infrastructural projects are likely to mitigate the risks posed by global economic uncertainties and sector-specific issues.
