Guyana, a small nation located in South America, has recently emerged as the world’s fastest-growing economy. With its GDP soaring by 38% in 2023 and 63% in 2022, Guyana has put itself on the map as an economy to watch in the years to come. But what sparked this economic revolution?

In 2015, ExxonMobil made a significant discovery – the Liza-1 well, an oil and gas field off Guyana’s coast. With partners like Hess Guyana Exploration and CNOOC Petroleum Guyana, ExxonMobil embarked on exploring the larger Stabroek Block area. Extensive drilling led to the discovery of several massive oil and gas fields, boosting the region’s potential for output.

The turning point for Guyana came when oil prices surged post-Covid-19 pandemic and global demand for alternatives to Middle Eastern and Venezuelan oil increased. This surge in demand allowed Guyana’s economy to reap the benefits of its oil discoveries. Since then, average annual growth rates have exceeded 40% since 2020.

Looking ahead, research firm BMI predicts that further oil discoveries, increased output, and geopolitical tensions will drive Guyana’s GDP growth to 115% by 2028. This would make it the fastest-growing economy globally. However, the challenge lies in ensuring that this newfound oil bonanza translates into sustained progress for the Guyanese population. Avoiding the pitfalls of the “Dutch disease,” where reliance on a single commodity stifles other sectors due to rising domestic prices, will be crucial for Guyana’s economic future.