TabZ Live: 🇬🇾⚡️ — Guyana, already the world’s fastest-growing economy, is set to gain even more from...

🇬🇾⚡️ — Guyana, already the world’s fastest-growing economy, is set to gain even more from soaring oil prices caused by the US-Israeli war against Iran, as global energy markets shift toward politically stable producers with unrestricted export routes, Reuters writes.

Driven by an Exxon Mobil-led consortium, Guyana has increased oil production to more than 900,000 barrels per day in just seven years. The country’s GDP has quadrupled since oil production began in 2019, reaching $27.5 billion in 2024.

With oil prices up roughly 30% since the conflict began, Reuters estimates Guyana’s oil revenues could rise 67% this year to around $4.3 billion if prices stay near $100 per barrel. Guyana is also nearing a major financial milestone: Exxon’s consortium may recover its development costs this year, increasing Guyana’s share of profit oil from 12.5% to 50%.

President Irfaan Ali said the government aims to avoid the boom-and-bust problems seen in neighboring Venezuela by channeling revenues through a sovereign wealth fund established in 2019.

The country’s location also gives it a strategic advantage over Gulf producers because its exports avoid chokepoints like the Strait of Hormuz. Guyana’s low production costs and geopolitical stability are also making it increasingly important to global energy markets.

Still, challenges remain. Much of the economic growth is concentrated in oil, which now accounts for more than 75% of GDP, while infrastructure issues, inflation, electricity outages, and complaints that foreign firms benefit more than local businesses continue to fuel criticism.