Guyana’s economic growth significantly accelerated to 43.5% in 2020. This was mainly due to the first commercial production of oil, although production was dampened by the impact of COVID-19 on oil prices. Guyana registered just over 6,300 cases of the highly infectious virus, and 164 deaths in 2020. Social distancing measures to slow COVID-19 transmission also affected the non-oil economy, with mixed performance from the traditional main sectors. The fiscal deficit widened as the Government took measures to support individuals and businesses affected by the pandemic. Debt was relatively stable, although the Government’s overdraft with the Bank of Guyana increased.

Prospects for non-oil recovery in 2021 are uncertain. Much will depend on the speed and effectiveness of vaccination against COVID-19 in Guyana and its trading partners. Oil production will increase, although the long-term prospects for the industry could be impacted by the effect of changing demand for energy as a consequence of changing work practices including remote working, and by increasing concerns about fossil fuels’ impact on climate change.