Guyana GDP To Grow Fourteen Times To China – Free PDF Download

CONTEXT

• South America may be battered by weak growth, unrest and  austerity
• But one of its smallest countries is about to experience the  fastest economic growth on the planet.
• According to the International Monetary Fund, Guyana, a country of 780,000 that neighbors Brazil and
• Venezuela in the region’s northeast corner, will see its economy  balloon 86% next year after expanding 4.4% this year.
• That’s 14 times the projected pace of China.

WHAT  IS  THE  REASON?

• South America’s only English-speaking nation owes  the anticipated windfall to offshore oil deposits  discovered in 2015.

• At the moment, the country doesn’t produce any crude.
• “We’re moving from a very low base to a stratospheric leap” Finance Minister Winston Jordan

IMF  PROJECTION

• While Guyana’s annual gross domestic product is $4 billion,
• It will expand to about $15 billion by 2024, according to the  IMF.
• But its forecast may be subject to large revisions, since even small  changes to the projected oil output in 2020 would result in big  swings in the overall economic performance.

DEEPWATER  DRILLING

• Exxon has partnered with Hess Corp. and China’s CNOOC Ltd.  to develop one of the world’s biggest new Deepwater oil  discoveries off the country’s coast.
• Exxon said it will begin pumping from its first well next  month, and by 2025 Guyana will produce at least 750,000  barrels a day.

• The government plans to use some of the money derived  from its royalties,
• To build highways to connect coastal towns to the  sparsely populated interior, which has gold, diamond and  bauxite deposits, Jordan said.
• The oil sector will represent about 40% of the economy  within five years.

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