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Guyana Becomes One of the Fastest Growing Countries in the World Thanks to Oil. But Economic Wealth Hides Serious Challenges: Inequality, Unemployment, and Social Exclusion.
On the northern coast of South America, a small country defies expectations and stands out on the global stage for its staggering economic growth.
Guyana, a neighbor of Brazil, has seen its economy make an impressive leap in recent years, but not everything is cause for celebration.
Behind the impressive numbers and promises of wealth, there are stories of inequality and challenges that still need to be faced.
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How can a nation with fewer than 1 million inhabitants become one of the biggest cases of economic growth in the world? And more importantly, how does this affect those living there?
The Impact of Oil: An Unprecedented Economic Leap
Between 2019 and 2023, Guyana experienced an economic growth of 184% in its Gross Domestic Product (GDP), according to data from the International Monetary Fund (IMF).
According to an article from BBC Brazil, this extraordinary performance is driven by the exploration of vast oil reserves off the country’s coast, led by the American oil company ExxonMobil.
In concrete terms, GDP jumped from US$ 5.17 billion (R$ 27.7 billion) in 2019 to an impressive US$ 14.7 billion (R$ 68.2 billion) in 2023.
For context, in 2022 alone, growth was 62%, a rate rarely seen in modern economies.
The GDP per capita, a metric that divides total wealth by the number of inhabitants, also soared.
According to the World Bank, the indicator rose from US$ 6,477 (R$ 31,000) in 2019 to US$ 18,199 (R$ 87,000) in 2022. This amount is more than double Brazil’s GDP per capita during the same period, which was US$ 8,917 (R$ 39,900).
A South American “Dubai”?
The former Minister of Economy of Brazil, Paulo Guedes, once compared Guyana to an emerging “Dubai”, due to the speed with which the country has been accumulating wealth.
However, this analogy seems far from the reality faced by much of the local population.
Christine Rudder, a 23-year-old woman, embodies the difficulties faced by many Guyanese.
Living in Georgetown, the capital of Guyana, she resides just a few meters from ExxonMobil’s headquarters but has never secured a job in the oil industry.
To survive, Christine sells snacks and sweets at an improvised stand on the sidewalk outside her home.
“The rich got richer, and the poor got poorer,” says Christine in an interview with BBC News Brazil. Her account reflects the reality of many Guyanese, who have yet to feel the benefits of the economic boom.
Persistent Unemployment and Inequality
Despite the spectacular economic growth, unemployment remains a major challenge in Guyana.
According to the World Bank, the unemployment rate was 12.4% in 2022, more than double the global average of 5.3%.
Among young people, the situation is even more concerning: one in four, aged 15 to 24, was without formal employment in 2022.
The oil industry, by requiring highly specialized labor, has generated jobs that are largely filled by foreigners.
Workers from the United States, Venezuela, and Trinidad and Tobago are often hired, while many Guyanese remain on the sidelines. Local merchant Adrian Smith believes that “only 10% or 15% of these jobs go to us.”
According to the consortium led by ExxonMobil, training local professionals is a time-consuming process.
The company promises to invest US$ 100 million (R$ 495.5 million) in training over the next decade, an amount that represents only 0.23% of the total planned investments in the country.
Social Contrasts and Poverty
Despite advances, Guyana still presents deep social disparities. Data from 2019 indicated that 48.4% of the population lived in poverty.
However, there have been no updated figures since then, making it difficult to assess the current situation accurately.
Georgetown, the capital, reflects these inequalities.
While part of the population, mostly of Indian descent, lives comfortably, communities of African descent face difficulties with sanitation and adequate housing.
“Economic growth did not magically change people’s lives,” emphasizes Gerardo Noto, from the United Nations Development Program (UNDP).
The Future of Guyana
Despite the challenges, experts remain somewhat optimistic about the country’s future. According to Diletta Doretti from the World Bank, educational programs and improvements in health are important steps to reduce inequalities.
The government has also invested in infrastructure: in 2023, US$ 650 million (R$ 3.2 billion) was allocated to projects such as roads and ports, an increase of 247% compared to 2019.
However, Christine Rudder, like many other young Guyanese, dreams of a future far from her homeland. “It’s sad to have to leave my country to find a better job,” she laments.
A Model to Follow or a Warning?
The story of Guyana raises crucial questions: how to transform natural wealth into concrete benefits for the entire population? Is the country an example of opportunity or a warning about the dangers of inequality?
And you, do you believe that Guyana will be able to overcome its challenges and become a true “Dubai” in South America? Share your opinion in the comments!
Governo ditatorial e **** pode deixar uma população na miséria extrema. Basta a Guiana olhar para o vizinho. Lembrando que apenas uma commoditie pode sofrer altos e baixos do mercado.
É o momento de investir na educação, saúde, infraestrutura e turismo local, afinal possuem uma imensidão de floresta intacta.
A palavra corrupção ( ccorrrupção) é filtrada aqui como um palavrão…kkkk
Se o governo local não for ditatorial e ****, terá que investir na população local que não chega a um milhão de habitantes investindoo em infraestrutura, saúde e educação. Todavia, se os petrodólares forem desviados via corrupção para paraisos fiscais, como aconteceu na Venezuela, a miséria pode até piorar o que já era ruim antes da exploração do petróleo.