Political and Economic Update 2020

Guyana held elections in March 2020. Five months later, we have a new President. The prolonged political impasse, combined with the COVID-19 pandemic, in which Guyana has recorded 568 cases and 22 deaths, certainly has implications on the country’s economy.

Guyana’s economy is expected to grow by 52.8 percent, down from the 85.6 percent growth projected for 2020 in International Monetary Fund forecasts. The revised downward trend is a result of falling oil prices and the COVID-19 pandemic. The growth will be driven by an expansion in the oil and gas (O&G) sector, while COVID-19 is expected to have a negative impact on all other economic sectors within the country. Guyana is one of the few countries globally for which positive economic growth is forecasted in 2020. However, it should be emphasized that this is as a result of a new O&G industry coupled with an increase in the price of gold, which is Guyana’s second largest export.