Political & Economic Update 2021
Guyana’s economy is projected to grow by 20.9% in 2021 compared to 43.5% growth in 2020. This significant expansion in the Guyanese economy will be fueled by growth in the oil and gas sector.
Presently, the Guyanese economy is producing approximately 120,000 barrels of oil per day with a second FPSO expected to arrive during the fourth quarter of 2021 and production expected to begin in early 2022.
In order to propel growth in other sectors, the Government of Guyana (GoG) presented its 2021 budget totaling GY$383.1 billion. This budget allocation comes on the heels of the 2020 COVID-19 pandemic which resulted in the non-oil sector contracting similarly to most global economies. The manufacturing (8.6%), construction (6.3%) and services (9.4%) sectors saw the greatest decline in 2020.
The 2021 budget was noteworthy for several stimulus packages for the economy including the re-opening of closed sugar estates and a commitment to developing the agriculture sector and small businesses.
Additionally, the 2021 budget had an allocation of GY$235M reserved to make “doing business” in Guyana easier and more productive.
To date, the GoG has not utilized any revenue from the Natural Resources Fund (NRF) to finance any of its budget initiatives.