Guyanese borrowed significantly more to finance motor vehicles during the first half of 2026, with outstanding credit for cars climbing to $43 billion, according to the Ministry of Finance’s Mid-Year Report.
The report shows that credit for motor cars grew by 29.3 per cent between the end of December 2025 and the end of June this year, making vehicle financing a major contributor to the increase in household borrowing.
Overall lending to households rose by 14.6 per cent to $75.8 billion during the six-month period.
The Ministry described the increase in motor car financing as a “robust expansion in credit for motor cars,” which outpaced the overall growth in household lending.
The increase in borrowing coincided with greater spending on imported vehicles. The report noted that imports of consumption goods rose by 21.9 per cent to US$747.3 million during the first half of the year, with motor cars among the main contributors. Payments for motor car imports increased by US$43.5 million compared with the corresponding period last year.
Higher vehicle imports also contributed to increased government revenue. According to the report, VAT and excise tax collections reached $71.5 billion during the first six months of 2026, up $10.4 billion from the same period in 2025. The Ministry attributed part of the increase in excise taxes to higher imports of motor vehicles and alcoholic beverages.
The growth in car financing formed part of a broader increase in credit across the economy. Net domestic credit expanded by 15.5 per cent to $1.286 trillion, while lending to the private sector increased by 11.5 per cent to $592.8 billion.
Borrowing costs also eased slightly during the period. While commercial bank interest rates remained generally stable, the weighted average lending rate declined from 7.85 per cent at the end of 2025 to 7.72 per cent at the end of June 2026.
Car loans surge 29% as household borrowing climbs
