–non-oil economy climbs by 13.1 per cent; prospects remain positive for this year, Dr. Singh says

DESPITE global challenges which have curtailed growth and advancement in many countries, the resilience of Guyana’s economy has once again been demonstrated by the country’s significant economic performance.

Steered by the People’s Progressive Party/Civic’s (PPP/C) prudent and strategic management, the country’s economy is estimated to have grown by 43.6 per cent overall, with an expansion of 13.1 per cent in the non-oil economy.

“The growth in the overall economy reflects continued strong expansion in oil output, while growth in the non-oil economy is driven primarily by increases in rice, other crops, and bauxite production, along with expansion in other mining and quarrying as well as in the construction and services sectors,” Senior Minister in the Office of the President with Responsibility for Finance and the Public Service, Dr. Ashni Singh said during his presentation of the landmark $1.382 trillion Budget 2025 to the National Assembly, on Friday.

This, according to the senior minister, highlights Guyana’s emergence as a key player in the global energy market, but also underscores the stellar successes being achieved in building a diversified economic base.

Looking ahead, as Guyana marks five years as an oil producer, the pace of economic growth is expected to moderate this year due to the Liza Destiny FPSO achieving peak production in 2024 as well as the timing of the One Guyana FPSO’s startup in the second half of 2025.

Overall growth is, therefore, projected at 10.6 per cent for 2025, at which rate the country is still expected to be the third fastest growing economy in the world, Dr. Singh said.

“Significantly, reflecting the success of our efforts at economic diversification, growth in the non-oil economy is projected at 13.8 per cent for 2025,” the Senior Minister said.

In the area of agriculture, forestry and fishing sector, there is projected growth of 11.4 per cent in 2025, with increased production targeted for all subsectors.

The sugar growing subsector is projected to turn around and record growth of 115.4 per cent in 2025.
A production target of approximately 101,000 tonnes is set for the year, as the Guyana Sugar Corporation (GuySuCo) continues its mechanisation and conversion efforts and promotes value-added production.

Additionally, the rice growing subsector, building on the strong performance last year, is expected to continue its momentum and grow by a further 12.4 per cent this year. Rice production for 2025 is targeted at 804,000 tonnes, supported by a ramp up in acreage cultivated, and continued focus on deploying new and more productive varieties, and enhancing research and development, Dr. Singh said.

“Also, continuing its upward trajectory, the other crops subsector is projected to expand by a further 11.7 per cent this year, with continued growth expected across all crop categories. This predominantly indicates an expansion in acreage cultivated, as we remain focused on executing our local food security agenda as well as supporting that of the region. In addition, the livestock subsector is expected to grow by 7.5 per cent, with production expected to expand across all subcategories.

This year, growth in the fishing subsector is expected to strengthen to 5.8 per cent, driven largely by increased aquaculture production.
Dr. Singh went to say that growth in the forestry sector is expected to moderate to 1.3 per cent, with a production target of 490,000 cubic metres in 2025. This is anticipated to be supported by increased production across all timber products.

EXTRACTIVE INDUSTRIES
The mining and quarrying sector is projected to expand by 10 per cent this year as modest growth is expected in the oil and gas and support services sector. Notwithstanding, the gold, bauxite, and other mining subsectors are expected to record strong growth.

Further, according to the senior minister, other mining and quarrying subsector is anticipated to continue its strong performance this year, with projected growth of 29.8 per cent. This reflects robust growth continuing in infrastructure investment through the PSIP, combined with intensified activity in private sector construction.

“Mr. Speaker, the gold and bauxite mining subsectors are expected to expand further, to grow this year by 17.2 per cent and 70.1 per cent, respectively. Regarding gold mining, this stronger position is expected to be driven by higher projected declarations from the Aurora gold mine and the small and medium-scale miners, alongside an increase in Gold Board purchases, aggregating to a target of approximately 501,000 ounces.

“Additionally, growth in bauxite mining this year is expected to be supported by higher expected production from both operators in the industry, with output from the Linden mine expected to increase by 167.3 per cent. Total bauxite production for 2025 is projected at just over 4.4 million metric tonnes,” Dr. Singh said.

In the area of manufacturing, the senior minister said the momentum in the manufacturing sector is anticipated to continue in 2025, with the sector expecting to grow by a further 13 per cent. This reflects an expansion across all subsectors, with expected growth of 115.4 per cent, 9.5 per cent, and 9.8 per cent in sugar manufacturing, rice manufacturing, and other manufacturing, respectively.

The construction sector, according to Dr. Singh, is expected to continue its growth trajectory this year to expand by an estimated 24.8 per cent. This remains consistent with the sustained accelerated activities in the PSIP expected this year, intensified by the continued investment in the private sector, especially in hospitality and housing.

“Building on the growth achieved last year, the services sector is projected to expand by eight per cent in 2025. Notable expansions are projected for wholesale and retail trade and repairs, administrative and support services, information and communication, and transport and storage. These are expected to increase by 8.7 per cent, 9.8 per cent, 5.8 per cent and 9.3 per cent, respectively,” Dr. Singh said.