Guyana's Economic Growth Continues as the Nation Diversifies

Despite the volatility in the global commodity market, Guyana’s economy has continued to grow, with some analysts describing the nation as one of the few “bright spots” in the region. Guyana’s economy grew 3% in 2015, while Latin America as a whole recorded a meager 0.8 percent growth.
Last month the International Monitory Fund (IMF) praised Guyana’s economic performance, saying the Guyanese economy remains “resilient” and that it expects improved growth this year, supported by an increase in gold production and public investment.
Guyana makes much of its money by exporting sugar, gold, bauxite, shrimp, timber, and rice, which combine to represent almost 60% of the country’s GDP.
Convinced that the commodity prices will remain volatile for years to come, Guyana is diversifying its economy, embarking on a large number of projects in the areas of transportation, telecommunications infrastructure, and renewable energy.
“Improvements in transportation and telecommunication infrastructure and renewable energy projects will boost productivity, integrate remote regions, facilitate economic diversification, and ease key impediments to growth,” states the IMF.
These reforms, says IMF, will increase the country’s GDP by 4% this year. In 2015, according to the IMF, “lower prices reduced the cost of fuel imports, which more than offset the impact of lower commodity export prices, reducing the current account deficit to 4.6% of GDP in 2015 from 10.8% in 2014.”
The health of its economy is reflected on its inflation, which has long remained at a comfortable level. The government expects the level of inflation to stay at around 2% this year.
When the commodity prices dropped and China’s economy slowed down, economists thought the small, resource-rich country would slip into crisis. But Guyana has managed to average an annual growth rate of 4.6% over the past eight years.