Not the U.S. or China: This is the reason why a country that was poorer than Venezuela is now the fastest growing in the world
Thanks to its recent oil boom and disciplined economic policy, Guyana has even outperformed global powers in key indicators.
A nation discreetly nestled between Brazil, Venezuela, and Suriname is undergoing a transformation that surprises even the most skeptical. Guyana, with just over 800,000 inhabitants, has gone from being one of the continent’s most backward economies to leading the global growth rankings.
Just a decade ago, Guyana was a country losing population, with thousands of citizens seeking better opportunities in neighboring countries. Today, the trend is beginning to reverse. Engineers, technicians, and skilled young people are returning amid the booming oil industry.
According to the International Monetary Fund (IMF), Guyana has managed to grow at an average annual rate of 47 percent since 2022. In 2024 alone, its economy grew by 58 percent, driven primarily by its growing oil production, which now reaches 650,000 barrels per day, up from zero in 2019.
A Record-Breaking GDP
Headlines can be misleading if not contextualized. Guyana is on the verge of surpassing the United States in GDP per capita adjusted for purchasing power parity (PPP), an indicator that reflects the value of goods and services in comparable terms. This year, the figure could be around $90,000 per person. However, this figure does not mean that Guyanese live like Americans.
Much of this income does not stay in the country, but is distributed among shareholders of multinationals or reinvested in the sector itself. Even so, the government has created a sovereign wealth fund that already exceeds 12.5 percent of the national GDP.
Guyana has understood that oil can be a lever, but not a guarantee. Therefore, it has focused on improving sectors such as health, education, and infrastructure, using oil revenues for long-term investments. The IMF has specifically commended the government for implementing responsible fiscal policies and avoiding debt overhangs, something uncommon in countries experiencing sudden booms.
Effective management and well-designed reforms
Growth is not limited to oil. The non-oil economy grew 13 percent in 2024 alone, and is expected to continue growing at an annual rate of 6.75 percent until 2030.
On a continent where natural resources have not always meant well-being for the population, Guyana is committed to transparency, diversification, and prudent investment. The IMF highlights progress in governance, the fight against corruption, and an economic strategy that combines stability with ambition.
“Guyana is poised to reap the benefits of its oil wealth thanks to effective management and well-designed structural reforms,” says Kenji Okamura, Deputy Managing Director of the IMF.
The Other Side: Social and Labor Challenges
Although the macroeconomic figures are impressive, the country is not without challenges. Rapid growth has created a shortage of skilled workers, forcing companies to look abroad for talent.
“There is a lot of demand for labor, but there is still a lack of local training. Companies want to hire Guyanese, but they can’t always find the right profiles,” says Tiffany Balgobin, a diving instructor in Georgetown.
Furthermore, although inflation remains under control (2.9 percent), there is a risk that an economy so focused on a resource like oil could suffer in the event of price falls or geopolitical challenges.
What is happening in Guyana is attracting international attention. From the IMF to consulting firms and universities, the country is studying its case as a possible model for how to transform natural resources into sustainable development. Its path is reminiscent, in part, of that of Norway, another country that used its oil to finance intergenerational welfare and savings.
The big question is whether Guyana can maintain this balance between accelerated growth and stability. If it succeeds, it will become not only the fastest-growing country in the world, but also one of those that has best seized its historic opportunity.
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