IDB notes decline in Guyana’s unemployment rate

IDB notes decline in Guyana’s unemployment rate

The Inter-American Development Bank (IDB) in its August 2023 Caribbean Economic Report, has made note that Guyana’s unemployment rate is on the decline.

According to the international financial institution, the unemployment rate in Guyana stands at 12.4%.

The bank’s report titled “Global and Regional Economies at a Crossroad”, notes that the unemployment rate in Guyana had increased significantly during the COVID-19 pandemic in 2021, but started trending downwards by the end of the same year.

“The unemployment rate declined from 15.6% in 2021 Q1 to 14.5% in 2021 Q3, driven mostly in declines in the unemployment rate of men, which dropped to 12% in the third quarter of 2021 compared to 18.4% for women,” the report explained.

Alluding to estimates provided by the International Labor Organization (ILO), the IDB said that in 2022, the unemployment rate fell to 12.4% overall, with unemployment among men standing at 11% and unemployment among women lingering at 14.4%.

The decline in unemployment in the country linked to Guyana’s rapidly growing Oil and Gas Industry, and the country’s booming construction Industry.

According to the report, the country’s high-rate of economic growth continues to be steadily driven by the growing Oil and Gas Industry.

“Recently, a new oil discovery was made, a new oil production vessel arrived in Guyana, and a

fifth oil production license was approved. Against this backdrop, unemployment rates have

declined, inflation rates have moderated, and lending to the private sector grew,” the IDB reported.

The report also noted that the country’s economy is expected to expand even more in 2023 with the arrival of its third FPSO.

“GDP grew by a record 62.3% in 2022, on the back of increased oil production, and is expected to grow by an additional 37.2% in 2023. Guyana’s 2nd FPSO (Liza 2) began production in February 2022 and a 3rd FPSO arrived in Guyana ahead of schedule in April 2023, yet to begin oil production,” it noted.

The growth in the country’s economy is largely driven by the Oil and Gas Industry.  According to the report, the non-oil economy grew by 11.5% in 2022 and is projected to grow by just 7.9% in 2023.

The main drivers of growth in the non-oil economy in 2022 were agriculture, services, and construction, which grew by 11.9%, 9.0%, 26.3%, respectively. For 2023, these sectors are projected to grow by 7.2%, 5.6%, and 17%. Gold production, which had contracted by 2.5% in 2022 is expected to recover with a growth rate of 12.7% in 2023.

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