Guyana’s Economic Growth in 2024

By Kemol King and Marianna Parraga

GEORGETOWN (Reuters) – Guyana’s economy achieved its fifth consecutive year of double-digit growth in 2024, expanding 43.6% as oil output and exports showed solid increases, according to the Finance minister on Friday. However, the expansion is expected to slow this year.

Latin America’s newest oil producer became the region’s fifth-largest crude exporter after Brazil, Mexico, Venezuela, and Colombia last year, identified as one of the main contributors to the growth of global oil supplies.

The oil sector expanded 57.7%, while the non-oil sector grew 13.1% last year, the minister stated.

Oil output rose to an average of 616,000 barrels per day from 391,000 bpd the previous year as a consortium led by U.S. major Exxon Mobil continued expanding operations and completed a key upgrade at its offshore facilities.

“Guyana’s economy continues to perform exceptionally well,” Singh said during the presentation of Guyana’s $6.63 billion public budget.

The economic growth is expected to slow in 2025, projecting a 10.6% expansion mainly fueled by the non-oil sector for the first time in years. Oil sector expansion is expected to slow to 9.5% growth due to lower crude prices.

Guyana forecasts an average of $71.9 per barrel for its crude this year, down from $78-80 last year, which could secure about $2.2 billion in revenue from oil exports.

EXPORTS FLOWING

Energy minister Vickram Bharrat stated that the country exported 225 crude cargoes in 2024, including 28 cargoes shipped by the government from its share of oil produced by the Exxon group. In 2023, the government received and exported 136 crude cargoes, based on LSEG shipping data.

Guyana’s shipments last year met European refiners’ demand for easy-to-process sweet crudes to replace some Middle Eastern grades, according to traders and LSEG data.

The nation’s oil revenue increased to $2.57 billion in 2024, which includes crude sales made by the government and $348 million in royalties received from the Exxon group, compared to $1.62 billion in 2023, including $218.1 million in royalties.

A fourth floating oil production facility is expected this year to add 250,000 bpd of output capacity to the Exxon consortium’s operations.