Recovery In Non-Oil Economy Will Broaden Guyanese Growth In Coming Quarters

• The Guyanese economy will be a regional and global outperformer in the coming quarters as an energy boom and a recovery in the non-oil sector are expected to drive real GDP growth. 
• Fitch Solutions, has long highlighted its constructive outlook for Guyana as a nascent energy boom offers tailwinds to short- and long-term growth. In 2020, the economy grew 43.5% despite an estimated 7.3% decline in non-oil activity and the 3.4% global contraction due to the COVID-19 pandemic. 
• That being said, easing domestic risks from COVID-19 and a robust global growth recovery, which is forecasted at 6.7% in 2021 and 4.2% in 2022, will support Guyanese domestic demand and underpin stronger exports in the coming quarters. 
• Sustained export growth and higher public spending will underpin a longer-term expansion; particularly as foreign energy companies accelerate crude oil production in the offshore Stabroek block. 
• Fitch Solutions forecasts Guyanese real GDP growth of 21.1% in 2021 and 19.2% in 2022, from a 45.3% expansion in 2020.

(Source: Fitch Solutions)