Guyana to lead Global Economic Growth from 2025-29: IMF

Guyana is projected to be the world’s fastest growing economy from 2025 to 2029, according to the data provided by the International Monetary Fund while the Trinidad and Tobago is reported to be among the worst performing economies in the Caribbean.

The IMF’s 2024 World Economic Outlook report showed that six of the top 10 fastest growing emerging economies are in Africa, led by Mozambique, Rwanda, and Ethiopia but the small island nation of the Caribbean, Guyana, stands at the top with a projected growth of 19.8 percent. 

The IMF said that Guyana is the fastest-growing new oil producer after recent discoveries brought the country’s oil reserves to 11 billion barrels. The country’s oil production is projected to grow from 645,000 barrels per day to 1.2 million bpd by 2027. 

Talking about the current year, the country with the highest forecast for gross domestic product (GDP) growth in 2024 is also Guyana. The IMF now expects the South American country’s economy to expand by 33.9% this year — up from its 26.6% projection six months ago.

According to the statistics, the twin-island nation has recorded an average annual GDP growth rate of -2.7% between 2015 and 2022. 

The data revealed that the economy of Guyana grew at an impressive average of 18 percent per year during the same period which positioned it as a model for rapid economic growth. 

The development came out after a report was compiled by the University of the West Indies economist professor Roger Hodgson and Doctor Rebecca Gookool-Bosland.

The report examined the growth performance of Caribbean economies, the impact of the COVID-19 pandemic, and the medium-term growth prospects. 

Hodgson suggest that Trinidad and Tobago increased oil and gas drilling and developed special economic zones to boost diversification. 

Meanwhile, he also said that Guyana’s economic surge, driven by hydrocarbon production, is expected to make its economy 12 times larger by 2029. 

It is to be noted that the overall Caribbean tourism sector is also recovering with a positive outlook for 2024. The report showcased that moderate growth is forecasted for most Caribbean nations, with Guyana, Dominica and Grenada leading the way, while Aruba, Haiti and Jamaica are expected to grow more slowly.