Guyana recording higher economic growth this year – ECLAC

The Economic Commission for Latin America and the Caribbean (ECLAC) now estimates a 39.2% increase in Guyana’s economic growth this year, a figure higher than what was earlier projected.

In its final report for 2023, titled “Preliminary Overview of the Economies of Latin America and the Caribbean”, ECLAC said the Latin America and Caribbean remains on a “low-growth path.”

The LAC region should only experience a 2.2% growth in real Gross Domestic Product (GDP).

The real GDP reflects the value of all goods and services produced in an economy (such as Guyana’s economy) and that value is adjusted for price increases or decreases.

If that 2.2% figure is disaggregated by sub-regions, the Caribbean, excluding Guyana, should record an increase of 3.4% (compared to 6.4% in 2022).

If Guyana’s growth is factored into the Caribbean’s overall growth rate, the region should see a 9.4% GDP increase this year.

Guyana, on its own, should see its massive economic expansion continue this year, largely due to developments in the country’s nascent oil and gas sector. The 39.2% growth rate forecast is the highest in the region.

Next year, ECLAC forecasts a 28.9% growth rate for Guyana.

In April, ECLAC estimated that Guyana’s 2023 growth rate would be about 37.2%.

Meanwhile, South America is forecast to register an increase of 1.5% (compared to 3.8% in 2022) while Central America and Mexico should record a 3.5% growth rate (compared to 4.1% in 2022).

These figures all have a direct bearing on people’s lives. For example, ECLAC noted that the slow regional growth should be accompanied by a slowdown in job creation.