Ongoing Energy Boom, Higher Oil Prices Will Narrow Guyana's Current Account Deficit
- Booming crude oil production in Guyana will drive significant export growth in the coming years, turning the country’s current account deficit into a surplus in 2023.
- An improving investment outlook will fuel capital inflows in the short-to-medium term, helping to limit risks to Guyana's external account stability.
- Fitch Solutions has revised its current account deficit forecasts to 9.1% of GDP in 2021 and 4.9% in 2022, from 17.9% and 8.5% previously, to incorporate more upbeat oil price and export forecasts.
- Moreover, as the non-oil sector improves, it will help attract FDI into Guyana’s infrastructure and agriculture sector, two economic priorities outlined by the government. These inflows, combined with a narrowing current account deficit, will help stabilize its external account, which had previously been bolstered by multilateral and bilateral assistance from wealthier countries.
(Source: Fitch Solutions)