THE extent of poverty in Guyana is a subject of ongoing discussion. The World Bank reported a poverty rate of 48.4 per cent in 2019, using a threshold of US$5.50 per person per day. In 2023, this threshold was updated to US$6.85 following Guyana’s classification as an upper middle-income country. The new benchmark is based on the monetary value assigned to a bundle of basic food and non-food items needed to define the poverty line. Reducing poverty is a central economic goal for the country.
Why was Guyana labelled an upper middle-income country by the World Bank when they implied that half its population lives in poverty? Mr. Elton Bollers cites the IDB’s higher poverty rate figure of 58 per cent (over 400,000 people). Where are these poor people? Business Consultant Mr. J.C. Bhagwandin has argued, through extrapolation of several economic indicators, that the existing poverty level is below 20 per cent, and fieldwork, focused interviews with business leaders, and qualitative information point in this direction. Furthermore, the illustrations that follow support the plausibility of a poverty level below 20 per cent.
GAICO Construction CEO Komal Singh notes that store salespeople and some other groups earn below the poverty line, while lower-level workers in construction, mining, financial services, and transport make over US$30 per day — enough to support a four-person household above the poverty level. GMSA President Rafeek Khan adds that each forestry sector worker (totalling a workforce of 25,000) earns between US$40–50 daily, sufficient to keep a five-person household above the poverty line.
Mr. Bhagwandin says that domestic helpers earn an average of US$761 per month. The attached table uses only wage data to estimate poverty thresholds and poverty levels for households of varying sizes.

At a daily threshold of US$6.85 per person, one worker needs to have at least US$206 monthly income to rise above the poverty line in a single-person household.
For households of up to three people, a single domestic helper’s income is sufficient to keep the household above the poverty level; however, in a four-person household, the US$761 monthly income falls short of the US$824 poverty line. If there are two earners, then their income would be above the poverty line for a household size of four or five. It is noted that the average household size is 3.6 persons.
As the COVID-19 pandemic eased in 2021 and oil revenues rose, the economy grew rapidly, with GDP averaging 37.4 per cent growth between 2022 to 2025 and over 50,000 new jobs created.
Public sector salaries increased by 35 per cent in this period, with minimum wages set at G$100,000 (US$476) for public employees and G$60,000 (US$286) for private sector workers, though most private workers earn much more than the minimum wage. Those still facing poverty include store sales staff, unskilled workers, a segment of self-employed workers (including street vendors), some Amerindian groups, segments of the unemployed, and existing squatters (N=17 areas).
Poverty remains higher in hinterland areas than on the coast. The poverty rate among Amerindian communities fell from 78.6 per cent in 2006 to less than half due to several poverty reduction measures, including carbon credit grants (US$23.2 million in 2024, US$19 million in 2025), child education annual grants, free higher and technical education, free healthcare, housing subsidies, and farming equipment support.
Poverty is shaped by job earnings (including multiple jobs), unearned income, in-kind benefits (like healthcare and education), skill sets, and work motivation. Together, these factors have cut the poverty rate by over half since 2019. The 2022 census should help confirm this; if not, a focused “Household Income and Expenditure” survey may be needed. Guyana aims to lower poverty to single digits.

Sincerely
Dr. Tara Singh