Guyana’s Gross Domestic Product (GDP) surged by 49.7% in the first half of 2024, driven predominantly by booming oil production in the Stabroek Block, according to the Government of Guyana’s Mid-Year Report.

The report highlights that while the oil sector has significantly boosted the country’s economic output, other sectors are experiencing mixed results. The non-oil GDP grew by 12.6% from January to June 2024, despite challenges in traditional industries.

The government forecasts a robust overall GDP growth of 42.3% for 2024, with non-oil growth expected to reach 11.8%. This would mark the fourth consecutive year of expansion in the non-oil economy following a contraction in 2020.

Sugar Sector Struggles

Despite a substantial $9 billion allocation to the Guyana Sugar Corporation (GuySuCo) and additional funding, the sugar industry experienced a dramatic 60% decline in production during the first half of 2024. GuySuCo reported producing only 6,739 tonnes of sugar, a decrease attributed to lingering impacts of drier-than-usual weather conditions. The government has revised its annual production forecast for sugar from 100,000 tonnes to 70,000 tonnes.

Gold Mining Decline

The gold mining sector also saw a contraction of 10.3%, with total gold declarations reaching 188,160 ounces by June. A notable increase from the largest producer was offset by reduced output from smaller and medium-scale producers. Government projections indicate a modest 2.1% growth in gold mining for the year.

Bauxite Production Falls

The bauxite sector recorded a 20% decline, producing 196,650 tonnes in the first half of 2024. Challenges in marketing and operations impacted production. However, expectations are that the sector will rebound in the latter half of the year, with overall production projected to surpass 1.62 million tonnes and a forecasted annual growth of 41.3%.

Agricultural Sector Trends

The livestock sector faced a 7.8% decline due to decreased output in poultry meat and milk, though beef, pork, mutton, and eggs showed growth. Challenges such as extreme temperatures and disease contributed to reduced livestock production.

Conversely, the rice industry saw a 17.9% growth, with production reaching 362,030 tonnes in the first half of 2024. Favorable weather conditions have prompted an upward revision of the annual production estimate to 717,032 tonnes, with a projected growth rate of 8.9%.

Forestry and Fishing Performances

Forestry expanded by 13.2% with 202,066 cubic meters of timber products produced by mid-year. The sector’s annual growth outlook remains at 3.9%.

In the fishing sector, increased interventions led to a 27.7% growth. Fish output grew by 39.1%, reaching 9,821 tonnes, while marine shrimp production rose by 1.9% to 9,588 tonnes. The aquaculture sector also saw a substantial 70.6% increase. The fishing sector’s annual growth estimate stands at 16.8%.

The mixed performance across sectors underscores both the benefits and challenges of Guyana’s economic landscape as it navigates significant oil-driven growth alongside sector-specific struggles.