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AmericasApril 6 2020

Is Guyana’s oil boom good news or bad for its economy?

The discovery of oil will likely transform Guyana’s economy. But there are downsides to sudden resource-related wealth, as other developing economies have learned. Lucien Chauvin reports from Georgetown.
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Guyana has been widely overlooked on the global stage since officially gaining its independence from the UK in February 1970, but that is changing – and rapidly. 

Although nestled at the top of South America, bordering Brazil, Suriname and Venezuela, Guyana is generally considered a Caribbean country. It has mineral resources, mainly bauxite, diamonds and gold, and, historically, has been a major sugar producer, but has been unable to secure consistent growth. It has the smallest economy in South America at $4bn, and the lowest gross domestic product (GDP) of the large Caribbean countries. 

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