The slump in oil prices due to the COVID-19 pandemic has severely affected many of the world’s wealthiest and largest oil producers. As a result of the economic turmoil that has been unleashed, many of these producers have had no choice but to turn to international institutions like the World Bank and the International Monetary Fund (IMF) for rapid emergency financing. But luckily for Guyana, the full extent of this blow would not be felt says Energy Department Head, Dr. Mark Bynoe.
During a virtual press conference with media operatives this morning, Dr. Bynoe said that Guyna is not exempt from the effects of the low priced environment but at the same time, it is partly insulated from the economic and social upheavals seen elsewhere. Dr. Bynoe recalled that the growth forecast for Guyana was as high as 86 percent based on the previous guidance of the IMF. He noted however that the steepness of the growth curve is expected to be realized beyond 2021.
Taking this and other factors into account, the official said, “It is unlikely that Guyana will feel the repercussions of the low price environment as much as other producing countries since dependence on oil has not penetrated the household income, diverted resources from agriculture or mining and/or change the national accounts other than forecasts levels or in any other significant way. There will be some level of ripple effects, some level of contraction will occur. Nonetheless, the situation continues to be monitored.”
The Energy Department Director also disclosed that Guyana has partnered with industry players that have robust structures and financial ability to weather the current storm. “ We need to understand that this is a long game as such, we are compelled to treat the current volatility in that light,” Dr. Bynoe concluded.