News Americas, NEW YORK, NY, Tues. Dec. 19, 2023: On the heels of threats by Venezuela, the International Monetary Fund (IMF) has released its latest report on Guyana’s economic outlook, forecasting a substantial surge in oil revenues for the country.
According to the report, Guyana’s oil revenues are expected to reach a staggering US$11 billion (GY$2.3 trillion) by 2028, driven by royalties and profit oil generated from six floating production, storage, and offloading (FPSO) vessels operating in the prolific Stabroek Block.
This estimated amount represents a significant 36.5% of Guyana’s gross domestic product (GDP) and showcases the nation’s growing economic potential in the oil sector. The projections for oil revenues are meticulously calculated based on expected earnings from oil exports, aligning with the guidelines outlined in the 2021 Natural Resource Fund (NRF) Act.
Despite the rapid expansion of the oil industry, the IMF’s report highlights that Guyana’s economy has not shown signs of inflationary pressures or overheating. This steady growth trajectory is attributed to Guyana’s commitment to fiscal prudence and disciplined fiscal management.
The report anticipates a moderation in fiscal impulses and outlines a path toward achieving a zero overall fiscal balance by the year 2028, emphasizing the nation’s dedication to responsible economic policies.
Guyana has set ambitious goals for its oil production, aiming to exceed one million barrels per day from six FPSOs by 2027. Vice President Bharrat Jagdeo expressed confidence that the substantial oil revenues will enable the country to address its debts effectively.
The recent commencement of operations for Prosperity, the third FPSO, alongside the existing Liza Destiny and Unity vessels, marks a significant milestone in Guyana’s oil production journey. Furthermore, the upcoming launches of the ONE GUYANA, Errea Wittu, and Jaguar FPSOs are expected to further boost the country’s oil production capabilities.