Guyana’s economy grows at one of the world’s fastest rates, IMF says
Key Points(5)
- Guyana’s economy grew by more than 19% in 2025, driven by expanding oil production and strong activity across non-oil sectors, according to the International Monetary Fund (IMF), which expects the country’s economic outlook to remain highly favorable.
- In a statement issued Oct.
- 8, the IMF Executive Board concluded its 2026 Article IV consultation with Guyana, commending the country’s economic performance while urging continued efforts to preserve financial stability, diversify the economy and support inclusive growth.
- Real gross domestic product (GDP) grew by more than 19% in 2025, following average growth of nearly 40% in 2023 and 2024.
- Oil GDP increased by 21%, while non-oil GDP expanded by 14%, supported by construction, agriculture, mining and manufacturing.
Guyana’s economy grew by more than 19% in 2025, driven by expanding oil production and strong activity across non-oil sectors, according to the International Monetary Fund (IMF), which expects the country’s economic outlook to remain highly favorable.
In a statement issued Oct. 8, the IMF Executive Board concluded its 2026 Article IV consultation with Guyana, commending the country’s economic performance while urging continued efforts to preserve financial stability, diversify the economy and support inclusive growth.
Real gross domestic product (GDP) grew by more than 19% in 2025, following average growth of nearly 40% in 2023 and 2024. Oil GDP increased by 21%, while non-oil GDP expanded by 14%, supported by construction, agriculture, mining and manufacturing.
Oil production exceeded 900,000 barrels per day, while stronger labor market conditions and private-sector credit growth also supported economic activity. These trends largely continued during the first half of 2026.
Average inflation remained at 3.3% in 2025 but began rising in 2026 as global energy and food prices increased.
The IMF said Guyana’s external position strengthened further, with the current account surplus widening and gross international reserves reaching approximately US$1.4 billion. The country’s Natural Resource Fund (NRF), which holds oil revenues, accumulated approximately US$3.3 billion by the end of 2025, equivalent to more than 12% of GDP.
Rising oil revenues also helped narrow the overall fiscal deficit to 5.5% of GDP in 2025, a decline of nearly two percentage points from the previous year, even as the government continued large-scale public investment.
The non-oil primary deficit as a share of non-oil GDP also declined slightly, according to the IMF.
The fund said the accumulation of oil revenues has helped strengthen Guyana’s fiscal and external buffers, while investments in infrastructure and human capital have supported growth outside the oil sector and improved social outcomes.
Monetary operations have helped contain liquidity and exchange rate pressures, while fiscal and supply-side measures have helped cushion the impact of rising prices.
Despite the rapid pace of expansion, the IMF said available indicators do not point to clear signs of economic overheating or significant competitiveness pressures. However, it cautioned that strong wage growth and wage-based measures of the real exchange rate warrant close monitoring.
The IMF also assessed Guyana’s external position in 2025 as broadly consistent with the level supported by the country’s economic fundamentals and appropriate policies. Rising oil production and lower imports of oil-related services contributed to the improvement.
The fund said Guyana’s development strategy appropriately emphasizes economic diversification, resilience and sustainability, alongside continued accumulation of savings through the Natural Resource Fund.
Maintaining prudent macroeconomic policies will be important as the country manages its rapidly expanding oil sector and directs revenues toward long-term development, the IMF said.
Its recommendations include preserving macroeconomic and financial stability, strengthening policy frameworks and ensuring that economic growth supports broader diversification and durable, inclusive development.
