Guyana Budget 2025: Economy grows 43.6% in 2024, driven by non-oil sectors and key industries

The South American country of Guyana has seen a major economic growth in recent years with 2024 witnessing it expanding by 43.6 per cent. The country’s non-oil sector saw a growth of more than 13 per cent, propelled mainly by the production of rice and minerals such as bauxite and expansion in construction and service industries and mining and quarrying.

The country’s economic progress came to the fore earlier in January when Dr. Ashni Singh, Senior Minister in the Office of the President with Responsibility for Finance presented the budget for the 2025 fiscal under the theme ‘A Secure, Prosperous, and Sustainable Guyana’. Later, Guyana’s finance ministry unveiled a summary ‘Budget 2025 at a glance’ dated January 17 and a press statement two days later. 

While mentioning various economic milestones the country achieved in 2024, the 2025 budget highlighted the goals that Guyana aspires to reach in the current year. It projected the country’s economic growth in 2025 at 10.6 per cent, making it the third fastest-growing economy in the world. The growth of the non-oil economy is expected to surpass that seen in 2024 with nearly 14 per cent.  

Sector wise growth projections

When seen sector-wise, Guyana’s agriculture, forestry and fishing sectors could grow by 11.4 per cent while the mining and quarrying sector by 10 per cent. The bauxite mining sub-sector is projected to grow by more than 70 per cent.

The oil and gas sector could see production of 674,000 barrels of crude oil per day, going up to an average of 786,000 barrels a day in the fourth quarter.  

The gold-mining sector is likely to see growth exceeding 17 per cent, with a production target of more than 500,000 ounces. 

The manufacturing sector is projected to grow by 13 per cent and the sugar manufacturing subsector by 115.4 per cent. The growth forecast for the rice manufacturing sub-sector is 9.5 per cent. The construction sector could see an expansion of nearly 25 per cent. 

The service sector, on the other hand, could grow by eight per cent. Its sub-sectors include wholesale and retail trade and repairs, administrative and support services, information and communication, and transport and storage. 

The budget announced that the monetary policy will seek to contain inflationary pressures and maintain exchange rate stability. The inflation rate for 12 months is expected to be at 2.8 per cent. 

Guyana’s overall balance of payment could see a surplus of US$561.3 million. Non-oil exports are projected to grow by more than 20 per cent to US$2.2 billion, thanks to higher earnings from rice, gold and bauxite. Total import payments are projected to grow by over 32 per cent to US$9 billion. 

Social welfare measures

The 2025 budget also includes several social welfare measures. Some of them include: Gas to Energy Project which aims to slash costs of electricity by half; increase old age pension from $36,000 per month to $41,000 per month; cash assistance to parents; free university and technical and vocational education; and increasing monthly public assistance from $19,000 to $22,000.