Guyana Economy

Subchapters:

Basic data
Public finances and the state budget
Banking system
Tax System

Basic data

In the context of world economic developments, Guyana’s GDP growth of 18.5 8 in 2021 is a rarity, and even more interesting is the outlook for 2022, when GDP is expected to grow by 46%. For example, according to the French bank Société Générale, this economic growth could reach up to 50%. According to specialized sources (e.g. Brinknews.com), annual oil production should reach 600,000 barrels per year. The size of oil deposits in Guyana is estimated at 6 to 8 billion barrels. The government has started work on the preparation of a legal framework for future mining activity and related industries. One of the related projects in the pipeline is the creation of a comprehensive oilfield service center on Crab Island, in the Berbice Estuary (about 100 km from Georgetown) worth US$500 million. Check ebizdir for economical facts of Guyana.

Economic risks in countries like Guyana are closely linked to current political developments. In addition, certain long-term trends can be found as to where the weaknesses in the economic structure are. These include the insufficient level of qualification of the workforce. Last but not least, we can also mention the high level of crime. At the same time, however, at the time of drafting this STI, it is necessary to correct the view of Guyana’s dependence on commodities, which used to be considered a weakness. Given Europe’s deep energy crisis, which is spreading globally, it can be expected that commodities will be the source of income in the medium term.

Table from MOP + additionally balance of payments, indebtedness/GDP.

Pointer	2019	2020	2021	2022	2023
GDP growth (%)	5.4	24	18.5	46	30
GDP/population (USD/PPP)	9,610.00	13,880.00	16,930.00	25,290.00	33,610.0
Inflation (%)	2.1	1	5.1	3.3	2.8
Unemployment (%)	14	16.4	ON	ON	ON
Export of goods (billion USD)	1.6	3.4	4.2	6.5	8.4
Import of goods (billion USD)	2.6	2.2	2.9	3.6	4
Trade Balance (Billion USD)	-1	0.7	1.3	2.9	4.5
Industrial production (% change)	ON	ON	ON	ON	ON
Population (millions)	0.8	0.8	0.8	0.8	0.8
Competitiveness	ON	ON	ON	ON	ON
OECD export risk	06.VII	06.VII	06.VII	ON	ON

Source: EIU, OECD, IMD

Public finance and state budget

Public finance	2021
State budget balance (% of GDP)	-8.2
Public debt (% of GDP)	48.6
Current account balance (billion USD)	-1.1

Taxes	2022
AFTER	40%
F.O	28%
VAT	14%

Due to the already mentioned rise in commodity prices on world markets, stable economic growth can be expected in the medium-term perspective, as long as the development in Guyana is not disrupted by some political upheaval.

Both the level of public debt (48.6% of GDP) and the current account balance and the balance of the state budget in 2021 are not grounds for a negative assessment. According to available data, foreign exchange reserves are around USD 700 million, which can be considered sufficient.

Banking system

The country’s central bank is the Bank of Guyana, which sets monetary policy and has regulatory and supervisory authority over the banking system.

The licensed banks are: Bank of BARODA (Guyana) Inc. Citizens Bank Guyana Inc. Demerara Bank Ltd. Guyana Bank for Trade and Industry Ltd., Bank of New Scotia Republic Bank (Guyana) Ltd., The regional central bank is the Eastern Carribbean Central Bank (ECCB), which is headquartered in Georgetown and conducts issuance policy, banking supervision of central banks and a single monetary policy for CARICOM member countries.

Licensed insurance companies are:

ASSURIA GENERAL & LIFE (GY) INC. CARICOM GENERAL INSURANCE COMPANY INC. DEMERARA MUTUAL LIFE ASSURANCE SOCIETY & FIRE AND GENERAL INSURANCE LTD. DIAMOND FIRE & GENERAL INSURANCE INC. FRANDEC & COMPANY INC GCIS INCORPORTED HAND IN HAND MUTUAL FIRE & LIFE INSURANCE COMPANIES LTD. NORTH AMERICAN LIFE, FIRE & GENERAL INSURANCE COMPANIES LTD. GUYANA AND TRINIDAD MUTUAL FIRE & LIFE INSURANCE COMPANIES LTD. MASSY UNITED INSURANCE LIMITED THE NEW INDIA ASSURANCE COMPANY (TRINIDAD & TOBAGO) LTD.