Guyana economy expands as debt costs fall and new budget is approved

Guyana is experiencing rapid economic expansion driven by oil production, leading to improved debt management and a declining unemployment rate. According to an Inter-American Development Bank report, the proportion of government income used for debt servicing has dropped from 7 cents per dollar to approximately 5 cents. The unemployment rate also fell from 14.5 percent in late 2021 to 6.8 percent in late 2024.

In addition to macroeconomic stability, the government has approved a US$1.65 billion budget for fiscal 2027. This budget follows a record-breaking 2026 budget and reflects a heavy reliance on petroleum, with US$2.62 billion in oil-fund withdrawals projected for 2027.

The nation is also diversifying its energy strategy through the GUYSOL solar programme, which aims to complete eight solar farms by August 2027. Furthermore, Trinidad’s Phoenix Park Gas Processors Limited has been selected for a domestic project in Guyana.