Photo caption

Tiny IMF predicts 86% growth next year

A small corner in Guyana. Photo: AFP

From December, Guyana will start oil exploration and analysts believe this will help the country's economy grow "galloping".

Guyana is an English speaking country with a population of about 780,000 and bordering Brazil, Suriname and Venezuela in the Northeastern region of South America. The IMF believes that by 2020 Guyana will achieve an economic growth rate of 86%. Meanwhile, this figure in 2019 is 4.4%.

On November 4, analyst Natalia Davies Hidalgo told CNBC (USA): "The reason for IMF to predict this is because Guyana has the highest oil and gas reserves per capita in the world."

When compared with the leader of the Organization of Petroleum Exporting Countries (OPEC), Saudi Arabia, which owns 1,900 barrels of oil per capita, Guyana's reserves even reach 3,900 barrels / people.

However, Mr. Hidalgo rated the IMF's forecast as "ambitious" because it was the highest annual economic prediction the agency had made. One reason is that Guyana currently has only a temporary government and is waiting for elections to be held in March next year, meaning that the country cannot approve the budget for 2020.

Meanwhile, UK-based information analysis firm IHS Markit said that while the economy may boom once oil exploitation is implemented, the political situation is not stable in Guyana. Therefore, the country's economic growth is likely to reach 30% instead of 86% as predicted by the IMF.

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