—Region forecast to grow by 6.2% while other economies expand modestly

GUYANA’S rapid economic expansion is set to significantly boost overall growth across the Caribbean in 2026, with the regional economy projected to grow by 6.2 per cent according to forecasts from the Caribbean Development Bank (CDB).
Speaking at the bank’s annual news conference on Tuesday, Deputy Director of Economics, Jason Cotton, noted that while growth across the rest of the Caribbean is expected to remain modest at 1.1 per cent, Guyana’s economy is projected to expand by more than 20 per cent, providing a substantial lift to the region’s overall performance amid ongoing global uncertainty and fiscal pressures.
“On the fiscal front, some countries will continue consolidating and strengthening revenue administration. However, pressures from post-disaster recovery, rising wage costs and declining Citizenship-by-Investment revenues persist. In several cases, these pressures have led to deviations from medium-term debt reduction paths and will require fiscal adjustment to realign with established debt targets and preserve sustainability,” he said.
Cotton stated that the year 2025 was a reminder that small, open economies remain highly exposed to external shocks.
He noted that last year was challenging for the Caribbean region, as global conditions became less supportive and downside risks materialised.
“Excluding Guyana, regional growth decelerated to 0.6 per cent, from 1.4 per cent in 2024, as several economies recorded weaker growth or contractions. In contrast, Guyana’s growth decelerated from the exceptionally high rates recorded in 2024 but remained robust, with the economy still expanding at a double-digit pace. As a result, when Guyana is included, regional growth rose to 4.7 per cent,” he said.
Climate shocks, he explained, weighed in heavily on performance. Hurricane Melissa struck Jamaica while it was still recovering from Hurricane Beryl, pushing the economy into a second consecutive year of contraction.
“Global uncertainty, geopolitical tensions, both globally and within the wider Caribbean Basin, and climate-related shocks continue to cloud the outlook,” he said.
Back in January, Guyana’s finance Minister, Dr. Ashni Singh, had disclosed that, despite a year of global economic uncertainty, Guyana showed impressive resilience in 2025, with an estimated 19.3 per cent growth in overall real Gross Domestic Product (GDP) and 14.3 per cent growth in non-oil GDP.
During the presentation of the country’s 2026 fiscal package to the National Assembly Dr. Singh had pointed out that Guyana’s performance stood in stark contrast to the uneven growth and cautious outlook of the global economy.
Economic growth was fuelled by strong results in both the oil and gas sector and a thriving non-oil economy. The latter benefitted from solid activity in agriculture, mining, construction, and services. The agriculture, forestry, and fishing sector grew by 11.5 per cent, with all sub-sectors showing gains.
Notably, the sugar industry expanded by 26.5 per cent, while rice and livestock grew by 15.7 and 12.5 per cent, respectively. The fishing and forestry industries also posted growth of 6.5 and 2.7 per cent.
The extractive industries experienced some of the most significant gains, expanding by 21 per cent in 2025. Oil production reached 261.1 million barrels, thanks to the startup of the One Guyana Floating Production Storage and Offloading (FPSO) vessel.
The gold industry grew by 11.6 per cent, and bauxite output soared by 53.4 per cent. The manufacturing sector grew by 20 per cent, driven by increased output in sugar, rice, and non-metallic products. Construction surged by 31 per cent, supported by major public infrastructure projects and private investment.
Looking ahead, Dr. Singh anticipated continued strong growth for 2026. Overall GDP is projected to rise by 16.2 per cent, while non-oil GDP is expected to increase by 10.8 per cent. The oil and gas sector is forecasted to grow by 17.9 per cent, with production likely to reach nearly 307 million barrels. The construction sector is expected to keep its upward trend, growing by 25.4 per cent, while agriculture and manufacturing are predicted to expand by 7.6 and 12.9 per cent, respectively.
“Guyana’s economy remains one of the fastest growing in the world. Our ongoing diversification and careful management will ensure that growth stays inclusive and sustainable,” Dr. Singh had said.