Guyana

Economic Overview of Guyana

GDP and Economic Growth
• GDP (2024 estimate): $11.6 billion USD (rapidly growing economy).
• Growth Rate: Guyana’s economy is expected to grow by 35% in 2024, driven by booming oil production and related industries. This remarkable growth rate positions Guyana as one of the fastest-growing economies globally. The expansion of the oil and gas sector has contributed to rapid infrastructure development, increased foreign investment, and growing demand for various services.

Key Economic Features
• Guyana is a major oil exporter, with oil and gas exports constituting the backbone of the economy.
• The country benefits from a wealth of natural resources, including gold, bauxite, and timber, which are significant export commodities.
• Economic diversification remains a government priority, with efforts to develop agriculture, services, and manufacturing.

Key Sectors of the Guyanese Economy

1. Oil and Gas
• Guyana’s rapidly expanding oil industry, particularly offshore oil fields, has seen the country become one of the world’s fastest-growing oil producers.
• British companies in energy exploration, technology, and service provision are well-positioned to benefit from this booming sector.

2. Agriculture
• Guyana is a significant producer of rice, sugar, and fruits, and agricultural exports have seen increasing demand, especially in the Caribbean and Latin American markets.
• There is growing potential for UK companies to provide agricultural equipment, fertilizers, and expertise in sustainable farming practices.

3. Mining
• Gold and bauxite are important export commodities, with Guyana being one of the world’s top gold producers.
• UK companies can explore opportunities in mining technology, equipment, and environmental management.

4. Infrastructure Development
• With increasing foreign investment, especially in oil and energy, there is an expanding need for infrastructure development, including roads, ports, and electricity distribution.
• Opportunities for British firms in construction, civil engineering, and related services are rising rapidly.

5. Financial Services and Technology
• Guyana’s financial services sector is evolving with the growth of digital banking and fintech.
• There is an increasing demand for UK expertise in financial technology, cybersecurity, and insurance.

6. Tourism
• While still a developing sector, tourism in Guyana is expanding, with eco-tourism and adventure tourism as focal points.
• Opportunities for British firms to invest in hospitality, eco-lodges, and tour services are rising as the market grows.

Trade Environment

Main Export Partners
• United States, Canada, Trinidad and Tobago, Venezuela, and the Netherlands.

Main Import Partners
• United States, China, Trinidad and Tobago, and Suriname.

Trade Policies
• Guyana is a member of the Caribbean Community (CARICOM) and the World Trade Organization (WTO), which allows preferential trade with other member nations.
• The UK-Guyana trade relationship is supported by the Caribbean Basin Trade Partnership Act (CBTPA), which allows duty-free access for certain goods.

Opportunities for UK Exporters to Guyana

1. Oil and Gas
• British firms can take advantage of growing opportunities in oil exploration, offshore drilling, and oilfield services, as Guyana is expanding its oil production capacity.
• Opportunities exist in providing technology, equipment, and expertise in drilling and refinery operations.

2. Infrastructure and Construction
• With rapid economic growth, Guyana is investing heavily in infrastructure, including roads, housing, and energy generation.
• UK firms in construction, civil engineering, and smart city solutions can play a key role in this sector.

3. Agriculture and Food Products
• Guyana has a growing demand for modern farming equipment and technology, especially in rice and sugar production.
• There are also opportunities to export high-quality UK food products, including processed foods, beverages, and specialty items.

4. Renewable Energy
• The Guyanese government is keen on developing renewable energy sources, including hydroelectricity, solar, and wind power.
• British companies with expertise in green technologies and renewable energy infrastructure can capitalize on government efforts to diversify the energy mix.

5. Financial Services and Technology
• As the economy diversifies, there is a growing demand for modern financial services, including digital banking, insurance, and fintech solutions.
• UK companies specializing in financial services, blockchain, and cybersecurity can tap into this emerging market.

6. Education and Training
• Guyana’s growing economy demands skilled labor, and UK firms can offer training in areas like oil and gas, construction, and finance.
• There is increasing interest in English language education and vocational training programs.

UK-Guyana Trade Relations

1. Trade Agreement
• Guyana benefits from the UK’s trade agreements with CARICOM, as well as the UK-Guyana Framework Agreement, which supports preferential trade between the two countries.
• Guyana has a tariff-free trade agreement with the UK under the CARIFORUM-UK Economic Partnership Agreement (EPA).

2. UK Exports to Guyana (2023)
• Machinery and mechanical appliances: £7 million.
• Pharmaceuticals: £3 million.
• Electrical machinery: £2 million.
• Consumer goods (e.g., food and beverages): £1 million.

3. Investment Climate
• Guyana’s economic growth has led to a surge in foreign direct investment (FDI), particularly in the oil, infrastructure, and agriculture sectors.
• The UK remains one of Guyana’s key investors, with growing opportunities for joint ventures in key sectors.

Market Entry Considerations

Challenges to Entry
1. Regulatory Environment: Guyana has a relatively straightforward regulatory environment but requires navigating local bureaucracy and customs procedures.
2. Infrastructure Gaps: Despite significant growth, Guyana’s infrastructure is still developing, particularly outside major cities.
3. Corruption and Political Risk: While the government is focused on creating a more business-friendly environment, there are concerns about governance and corruption that businesses must address.

Recommendations for UK Exporters
• Partner with local companies to better navigate the regulatory landscape.
• Focus on the energy, infrastructure, and agriculture sectors where UK companies have a competitive advantage.
• Work closely with the British Chamber of Commerce in Guyana for market entry strategies and information.

Recent Political Developments

Economic Policy
• Guyana’s government remains committed to economic diversification and infrastructure development, with a strong focus on sustainable growth.
• Investment in oil revenue management and strengthening the non-oil economy remains a priority.

Political Climate
• The political landscape is stable, with the current government focusing on attracting foreign investment and fostering economic growth.
• Guyana’s strategic location and oil wealth make it a key player in regional development.

International Relations
• Guyana has strong ties to the United States and Canada, and its growing relationship with the UK presents new opportunities for trade.
• The government is keen to build stronger trade relationships with international partners and attract investment in key sectors.

Contact Information

British High Commission in Georgetown, Guyana
• Address: 257 New Garden Street, Georgetown, Guyana.
• Phone: +592 225 7022.
• Email: BritishHighCommission.Georgetown@fcdo.gov.uk.

British Chamber of Commerce in Guyana
• Address: 257 New Garden Street, Georgetown, Guyana.
• Phone: +592 225 7022.
• Email: info@britchamgy.com.

Guyana Office for Investment (GO-Invest)
• Address: 190-191 Camp Street, Georgetown, Guyana.
• Phone: +592 225 9026.
• Email: info@go-invest.gov.gy.

Conclusion

Guyana offers exceptional growth opportunities for UK exporters, particularly in sectors such as oil and gas, infrastructure, renewable energy, and agriculture. The country’s rapid economic expansion, driven by the oil boom, creates a dynamic business environment for British companies. By leveraging trade agreements, forming local partnerships, and focusing on key growth sectors, UK businesses can capitalize on Guyana’s burgeoning economy.

However, exporters must carefully consider local regulatory frameworks, infrastructure challenges, and the political climate to successfully navigate this fast-developing market.