The rapid expansion of Guyana’s oil and gas industry is also propelling growth in its mining and construction sectors. In this regard, the country’s Ministry of Finance outlined in its 2022 Half-Year report that the mining and quarrying industries are estimated to have expanded by 36.3% in the first half of the year.
OilNOW understands that sand output, based on surveys, is estimated to have expanded by 19.8%, on account of increased demand from the construction industry. In fact, the construction sector is now projected to grow by 19% in 2022 given the magnitude of housing and other development projects that will be needed to support oil’s domino effect on the economy.
Guyana oil boom will drive construction activity, reduce unemployment – Fitch Solutions | OilNOW
Services also saw expansion totaling 7.6% in the first half of the year. The government explained that expansion in the sector was mainly driven by the wholesale and retail trade, and transport and storage industries, which grew by 17.2% and 13.6% respectively, during the first half of the year. It explained that increased wholesale and retail trade activity was largely driven by the expansion in the construction industry and the corresponding growth in demand for building materials.
Growth in the transport and storage sector was mainly attributed to increased demand for haulage and warehousing for the oil and gas sector. Services are now expected to grow by 6.3% this year.
Despite being challenged by the COVID-19 pandemic, the government was keen to note the bump in tourism sector revenues which it attributed to the oil and gas sector.
Notwithstanding the pandemic, government said there was a 103% increase in visitor arrivals from January to May 2022 from 48,626 to 105,905, when compared to the same period in 2021. A further 158,223 additional arrivals are expected in the second half of 2022, coinciding with Guyana’s hosting of the finals of the Caribbean Premier League.
