Guyana’s economic landscape underwent a major transformation in 2022, as the country’s current account shifted to a surplus of 23.8% of gross domestic product (GDP). This notable change comes after two decades of consistent deficits. According to the International Monetary Fund (IMF), this turnaround is primarily attributed to the booming oil sector, with oil exports growing by over 200%, effectively surpassing the rise in imports caused by increased service imports in the oil sector and high commodity prices.
In a report on its Article IV consultation in Guyana, the IMF said the shift to a current account surplus has also positively affected national savings, which increased to 33.7% of GDP from a previous negative standing of -17%. This increase is fueled by contributions from both the private and public sectors. The IMF noted that although investment imports related to the oil sector had previously resulted in significant deficits in the current account balance, the ongoing high oil production is expected to maintain current account surpluses in the future.
In 2022, Guyana’s oil sector expanded remarkably by 124.8%, with the total production reaching 101.4 million barrels of crude oil. This substantial growth is largely credited to the commencement of production at the Liza Unity floating production unit, in addition to the output from the Liza Destiny, bringing the average production to 297,000 barrels per day (bpd) for the year.
The upward trend in oil production in Guyana began in 2019 with the start of the first project. In 2023, the Payara project was initiated, boosting the production capacity to 620,000 bpd. It is anticipated that production will reach full capacity early in 2024. With several other projects slated for launch in 2025, 2026, and 2027, production offshore Guyana is expected to exceed 1.3 million bpd.
