-IDB report says, notes GDP grew 19.3 per cent in 2025 as non-oil sector growth accelerated to 15 per cent
GUYANA’S economy continued to record strong expansion in 2025, with gross domestic product (GDP) growing by 19.3 per cent and significantly surpassing earlier growth expectations, according to the latest Caribbean Economics Quarterly published by the Inter-American Development Bank (IDB).
The IDB noted that the performance followed an exceptional 43.8 per cent expansion in 2024 and exceeded the International Monetary Fund’s (IMF) initial projection of 10.1 per cent growth for 2025.
The report said Guyana’s strengthened output performance was promoting socioeconomic development while also helping to insulate the country against increased global uncertainty and associated risks.
While growth in the oil sector moderated to 21.1 per cent in 2025, the country’s non-oil economy continued to expand at a faster pace.
According to the IDB, non-oil GDP growth increased from 13 per cent in 2024 to 15 per cent in 2025, demonstrating continued expansion across the wider economy.
The mining and quarrying sector also increased its share of the economy, rising to 79 per cent in 2025 from 67 per cent in 2022 and 51 per cent in 2021.
The report noted that oil production received a further boost late in the fourth quarter of 2025 with the coming on stream of a new oil extraction vessel.
Looking ahead, the IDB acknowledged that Guyana’s economic outlook remains subject to uncertainty, particularly amid persistent geopolitical tensions and volatility in international oil prices.
The IMF forecasts that Guyana’s economic expansion in 2026 will be smaller than previously projected. However, the IDB said macro-fiscal risks are expected to remain manageable.
It pointed to several factors supporting this outlook, including Guyana’s rules governing withdrawals from the Natural Resource Fund, the high concessionality of the country’s debt portfolio, its low debt-service ratio and continued high GDP growth.
The report also highlighted measures being taken by the Government to cushion the impact of current oil price pressures, including maintaining the zero-rate tax on fuel, electricity subsidies, a new universal cash grant and support for key sectors.
Despite the more uncertain global environment, the IDB’s assessment points to continued strong economic expansion and resilience, with Guyana’s robust growth providing an important buffer against external risks.
