Guyana’s construction sector expanded by an estimated 24.7 per cent during the first half of 2026, with continued public and private investment expected to drive even stronger growth by the end of the year.
The Ministry of Finance, in its 2026 Mid-Year Report, said the sector remains one of the principal drivers of growth in the country’s non-oil economy.
“The construction sector is estimated to have expanded by 24.7 percent in the first half of year,” the report stated.
The Ministry attributed the performance to the Government’s expanded Public Sector Investment Programme (PSIP), coupled with private investment across several industries.
With that investment expected to maintain momentum during the remaining six months, the Ministry has projected that the construction sector will expand by 27.6 per cent for the full year.
The strong construction performance comes as Guyana’s overall economy grew by an estimated 33.3 per cent during the first half of the year, while the non-oil economy expanded by 10.1 per cent.
According to the report, growth in the non-oil economy was driven principally by construction, services and mining. Overall economic growth for 2026 is now projected at 20.8 per cent, with non-oil growth forecast at 10.2 per cent.
Public investment remains key driver
Government’s investment programme continues to provide significant activity for the construction industry.
PSIP expenditure reached $248.9 billion at the end of June, marginally above the $247 billion spent during the corresponding period last year.
Spending on the domestic portfolio increased by $8.4 billion to $223.4 billion, while $25.5 billion was spent on foreign-funded projects.
The Government has since revised the total PSIP for 2026 upward from $779.6 billion to $829.7 billion, primarily to accommodate additional investment in power generation and distribution, housing and public infrastructure projects.
The pace of construction is also being reflected in demand for raw materials.
The Mid-Year Report said the other mining and quarrying subsector, which includes sand, stone, diamonds and manganese, grew by an estimated 40 per cent during the first six months.
That performance was driven by what the Ministry described as the “continued surge in construction activity in both the public and private sector.”
Sand declarations increased by 61.7 per cent, while stone declarations rose by 2.3 per cent. Those increases outweighed declines in manganese production and diamond declarations.
Imports also provide another indication of construction-related demand. During the first half of the year, imports of building materials increased by US$40.1 million compared with the corresponding period in 2025.
Labour demand remains a challenge
The expansion is taking place as Guyana faces increasing demand for workers across several professions and skill areas.
Elsewhere in the Mid-Year Report, the Ministry warned that the country’s labour-market challenge has increasingly shifted from creating jobs to ensuring that workers with the necessary skills are available to fill them.
This is particularly relevant to industries experiencing rapid expansion, with shortages in technical and professional skills carrying the risk of project delays, higher labour costs and difficulties in service delivery.
Against that backdrop, technical and vocational training is being expanded in areas relevant to construction and other industries, including electrical installation, welding and fabrication, plumbing, furniture making, heavy-duty equipment operation and masonry.
The Government also intends to conduct sector-specific manpower studies during the second half of 2026 to better determine labour requirements in areas where shortages exist.
