2023 Q1 Economic Update
Guyana’s economy remains the fastest growing economy globally with a growth rate of 62.3% in 2022, driven predominantly by expansions in petroleum activities. However, the non-oil economy also expanded across the board, registering an estimated growth of 11.5%, in the same period. Except for the sugar and fishing industries, every other sector experienced growth. Most notably, the construction sector grew by nearly 30% in 2022 due to increased investment from both the public and private sectors.
Cognizant of the infrastructural support and opportunities that lie ahead, the government, local and foreign investors are increasing their spending on infrastructure and other support activities in-country. Consequently, the construction sector is expected to grow by an estimated 17% in 2023. Amidst a global inflationary environment, Guyana also managed to keep its inflation to 7.2%, lower than the global average of 8.8%.
During the latter half of 2022, Toroparu gold deposits were discovered which is estimated to boast 5.4 million metric ounces of gold and 2.5 million metric ounces of silver. Canadian Gold Mines, through its operator ETK Mining, is expected to be executing this operation in 2023, further contributing to the growth of Guyana’s extractive and supporting sectors. In the O&G sector, ExxonMobil Guyana has put forward its sixth project, Whiptail, for approval by Guyana’s Environmental Protection Agency. Other operators are expected to conduct exploration activities this year as well; specifically, Tullow, Repsol and CGX. The Government of Guyana has also released 14 offshore oil blocks for tendering.