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Guyana’s oil growth boosting regional economies– CDB Director of Economics
Kaieteur News- Ian Durant, Director of Economics at the Caribbean Development Bank (CDB) on Wednesday stated that Guyana’s rapid economic expansion, fueled by its growing oil sector, continues to be a major driver of regional economic growth.
Ian Durant, Director of Economics, CDB
During his address at CDB Annual News Conference held under the theme Rebirth: Innovate, Transform and Thrive for a Resilient Future, Durant highlighted the significant role Guyana plays in shaping the economic outlook for the Caribbean.
Reviewing 2024, Durant noted that the region has largely recovered from severe economic shocks, including the COVID-19 pandemic, supply chain disruptions exacerbated by geopolitical tensions, and high inflation. He pointed out that regional output, excluding Guyana, was estimated to grow by 1.7%, reflecting a normalization of economic conditions.
“Growth rate varied among borrowing member countries with Guyana and Haiti standing out as outliers. Guyana again was the standout performer with its economy surging by 43.5% fueled by the increased oil production and continued expansion in its non-energy sectors,” Durant stated.
He highlighted the transformative effect of Guyana’s economic boom on the region, stating that when Guyana is included in the calculation, regional growth jumps from 1.7% to 8.8%, a notable increase from 6.6% in 2023. This he said highlights Guyana’s significant influence on regional economic growth.
Looking ahead to 2025, the CDB projects regional growth of 2.1% excluding Guyana. However, the nation’s oil-driven expansion is expected to continue contributing significantly to the regional economy. “Guyana’s expansion is expected to slow to 11.9% following its rapid growth in oil production in 2024, nevertheless the country’s performance will remain a key contributor to the region’s economic growth, hence including all 19 member countries the region is projected to grow by 4.6%,”Durant explained.
Oil is currently being produced from the Stabroek Block located offshore Guyana. This block renowned for its vast oil potential, has been the subject of global attention since oil production commenced five years ago.
American oil giant is the operator of the block which is estimated to hold 11.6 billion barrels of oil. Notably, Exxon is currently producing over 650,000 barrels of oil per day (bpd) from Liza 1, Liza 2, and Payara developments, supported by three floating production storage and offloading (FPSO) vessels—Destiny, Unity, and Prosperity. Exxon’s fourth development, Yellowtail, is expected to come onstream later this year, with the fifth and sixth projects, Uaru and Whiptail, scheduled for startup in 2026 and 2027, respectively.
Moreover, while the Caribbean is expected to remain on a growth trajectory in 2025, Durant cautioned that several risks could disrupt this progress. “Internationally, geopolitical tensions along with the resurgence of protectionist policies could elevate uncertainty in global markets, disrupt supply chains, and exert upward pressure on commodity prices,” he noted.
Additionally, Durant pointed to policy shifts in the United States, explaining that this uncertainty, along with a potential slowdown in major trading partners, could reduce demand for regional exports. Highlighting the importance of continued economic expansion, Durant stressed that higher growth is necessary to reduce poverty, bridge inequalities and elevate the standard of living.
(Guyana’s oil growth boosting regional economies– CDB Director of Economics)
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