Economic Outline

flag Guyana Guyana: Economic Outline

Economic Indicators

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19

According to the IMF, Guyana's economy grew an estimated 20.4% in 2021, driven mainly by the country's energetic sector and the vast amounts of oil discovered offshore, which made it the country with the highest amount of oil per person in the world. In 2022, the IMF expects the Guyanese economy will grow 48.7% before slowing down to 32.1% in 2023. The discovery of the offshore oil reserves, and subsequent production are regarded as transformative for the country's economic prosperity.

Government balance was in deficit at -5.5% of GDP in 2021, but is projected to improve to 0.5% and 1.1% in 2022 and 2023, respectively. The inflation rate increased to 3.2% in 2021, but is expected to decrease to 2.7% in 2022 and slightly increase to 2.9% in 2023. Government debt decreased to 47% of GDP in 2021, and is expected to further decrease to 36.2% in 2022 and 30.1% in 2023. Additionally, less than 50% of Guyana's debt is owed to external creditors, a key indicator of financial health. Even though the discovery of oil represents a great occasion for increased revenue and could help financing the country’s development needs, it also brings new challenges that will require careful management of economic, governance and environmental risks. The government is working on implementing structural reforms in such areas as procurement and financial monitoring to boost competitiveness and improve the business environment in the country in order to take advantage of the opportunities that come with oil exploitation. Since August 2020, Guyana is ruled by President Irfaan Ali, who heads a centre-left party: The People Progressive Party. The government program includes infrastructure development and a reduction in emissions and deforestation in exchange for development assistance given that the country faces a depletion of its mining resources and a reduction in the sector's business activities and that growth has been constrained by poor quality infrastructure, as well as a lack of skilled labour - particularly in the fields of science, technology and engineering. In order to maximise opportunities related to oil development, the Government has also carried out structural reforms to improve the business environment and fight corruption. However, the business environment in the country remains risky. Tensions with Venezuela about the Essequibo region haven't been settled, and had intensify in 2020. The government implemented measures in response to the economic crisis resulting from the COVID-19 pandemic throughout 2020 and 2021. The USD 1.5 billion emergency budget included various tax measures (selected VAT removals, corporate tax reductions, tax concessions, reversal of land lease fees), increased spending in health care, temporary income support for job loss workers and self-employed, and incentives to revitalise productive and infrastructure sectors - with the allocations health and education sectors account for approximately 15%of GDP, each. Overall, the measures implemented by the government in light of the pandemic have been effective in boosting economic activity, which has been gradually recovering.

Guyana's unemployment rate remains stable at an estimated 13.9% in 2021. Other social issues - which especially affect young adults - include violence, lack of opportunities, the spread of HIV/AIDS, limited participation in civil society and poor quality of educational institutions.

 
Main Indicators 201920202021 (e)2022 (e)2023 (e)
GDP (billions USD) 5.17e5.47e7.409.8412.03
GDP (Constant Prices, Annual % Change) 5.4e43.5e20.448.732.1
GDP per Capita (USD) 6,5946,9539,36912,42615,153
General Government Balance (in % of GDP) -4.4-4.8-5.50.51.1
General Government Gross Debt (in % of GDP) 43.951.4e47.036.230.1
Inflation Rate (%) 2.10.73.22.72.9
Current Account (billions USD) -2.82-0.79-1.241.362.47
Current Account (in % of GDP) -54.4-14.5-16.813.820.5

Source: IMF – World Economic Outlook Database - October 2021.

Note: (e) Estimated Data


 
Monetary Indicators 20162017201820192020
Guyana Dollar (GYD) - Average Annual Exchange Rate For 1 MUR 5.815.996.125.875.30

Source: World Bank - Latest available data.

 

Main Sectors of Industry

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 15.4 25.0 59.6
Value Added (in % of GDP) 16.9 38.8 38.9
Value Added (Annual % Change) 4.1 162.7 -9.4

Source: World Bank - Latest available data.

 

Learn more about Market Analyses about Guyana on Globaltrade.net, the Directory for International Trade Service Providers.

The Active Population in Figures

201820192020
Labour Force 306,673309,040291,832

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 58.52%58.56%58.64%
Women activity rate 45.45%46.15%46.43%

Source: International Labour Organization, ILOSTAT database

 

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Indicator of Economic Freedom

Definition:

The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.

Score:
57,4/100
World Rank:
116
Regional Rank:
22

Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation

 
 

Country Risk

See the country risk analysis provided by Coface.

 

Indicator of Political Freedom

Definition:

The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.

Ranking:
Free
Political Freedom:
2/7

Political freedom in the world (interactive map)
Source: Freedom in the World Report, Freedom House

 

Indicator of Freedom of the Press

Definition:

The world rankings, published annually, measures violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position are assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire incorporating the main criteria (44 in total) to assess the situation of press freedom in a given country. This questionnaire was sent to partner organisations,150 RWB correspondents, journalists, researchers, jurists and human rights activists. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).

World Rank:
51/180

Source: World Press Freedom Index, Reporters Without Borders

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Sources of General Economic Information

Main Online Newspapers and Portals
Guyana Chronicle
Kaieteur News
Stabroek News
The Guyana Times
Guyana Newspapers
Guyana News
Useful Resources
Ministry of Finance
Ministry of Foreign Affairs and International Cooperation
Ministry of Tourism, Industry and Commerce
Office of the President
Official Government Website
Bank of Guyana
 
 

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Latest Update: May 2022