Guyana’s economy continued its strong upward climb in the first half of 2025, posting major gains in both the oil and non-oil sectors despite ongoing global uncertainties.
According to the Bank of Guyana’s 2025 Half-Year Report, the local economy grew steadily even as worldwide growth slowed. Real oil GDP rose by 7.5 percent, supported by consistent output from the oil and gas subsector. At the same time, the broader economy outperformed expectations, with non-oil GDP climbing by 13.8 percent.
This non-oil expansion was pushed by solid performances across agriculture, gold and bauxite mining, manufacturing, construction, and services, showing that the country’s economic base is widening beyond petroleum.
Inflation remained contained, with the Urban Consumer Price Index at 2.9 percent at the end of June, mainly due to higher food prices. The balance of payments also improved significantly, shifting to a US$10.3 million surplus, compared to a large deficit for the same period last year. This was supported by a stronger current account, even as the country continued to invest heavily in major projects, including the acquisition of the fourth Floating Production Storage and Offloading (FPSO) vessel.
Foreign exchange activity surged by 17.2 percent, reflecting stronger trade, while the Guyana dollar stayed stable at G$208.50 to the US dollar.
On the fiscal side, government spending increased, particularly on infrastructure such as roads, bridges and hospitals, along with expanded social support programmes. This contributed to a wider public sector deficit, but revenues also grew sharply, rising 44.7 percent.
Public debt increased by 13.5 percent, driven by both domestic and external borrowing. However, the report shows that debt sustainability indicators remain well within safe limits, signalling that Guyana’s borrowing levels are still manageable and allow room for continued development.
Credit to the private sector rose by 7.7 percent, while commercial bank interest rates trended downward. The wider financial system remained stable and well-capitalised, even as stress tests pointed to some vulnerabilities in investment and credit portfolios.
Overall, Guyana’s economic performance in the first half of 2025 demonstrates strong momentum, powered by rapid expansion in both oil and non-oil industries. With continued growth expected in agriculture, mining, construction, manufacturing, and services, the country remains on track for another year of robust economic activity.
