Guyana has achieved a historic milestone in economic performance, as their gross domestic product increased by 49.7% for the first half of 2024. Guyana’s President, Dr Mohamed Irfaan Ali, stated that the country’s non-oil economy has also performed well. There are chances that the oil and gas revenues were essential to this growth. Additionally, they helped in substantial achievements that have hit the economy so far.
The non-oil sector rose by an estimated growth rate of 12.6% from 11.7% the previous year. Moreover, it reflected healthy expansion across several sectors outside the oil and gas industry. Also, the construction sector increased by 43.7% in the first half of 2024. President Ali has also pointed out that, since 1992, Guyana’s banking and financial structure has undergone structural change. Deposits, assets, and credit to the private sector have impressively risen, contributing to the country’s overall growth.
Despite these challenges, such as shortages of construction workers in many banks, Guyana’s economy remains among the fastest-growing. The President hinted that the country was moving into a new phase, and public and private sector investments would likely increase much more in the year’s second half. However, this will require careful policy initiatives to support the projected growth and development.
Moreover, agriculture also performed well, with a 17.9% increase in rice production. However, the sugar industry faced difficulties, contracting by 60% in the first half of the year due to drought and the ongoing recovery from past ignorance. Despite these setbacks, there is hope that the sugar crop could rebound in the second half of the year, with increased mechanization and planting work underway.
Additionally, the financial sector has made several reforms and policies, reflected in the 44% increase in credit to the private sector from 2020 to 2023. Moreover, this credit increase has positively affected other important sectors and contributed to general economic growth. The long-term strategy for the country’s development focuses on the government’s efforts to build an appropriate climate for further economic growth.
