IMF says Guyana economy grew more than 19 per cent last year on oil output

GEORGETOWN, Guyana. Guyana's economy grew by more than 19 per cent last year, driven by strong oil production and a 14 per cent rise in non-oil activity, the International Monetary Fund (IMF) has reported.

Oil output exceeded 900,000 barrels per day, while inflation rose slightly in 2026 because of higher global food and energy prices.

International reserves reached US$1.4 billion, and the Natural Resource Fund had accumulated about US$3.3 billion by the end of 2025.

The IMF said strong oil revenues helped reduce the fiscal deficit to 5.5 per cent of GDP in 2025, while public investment supported growth and social development.

Watching wages

Savings in the Natural Resource Fund strengthened the country's financial position, and monetary and fiscal measures helped contain inflation and exchange rate pressures. However, the IMF said strong wage growth and competitiveness indicators require close monitoring.

Positive outlook, with risks

The Fund said Guyana's outlook remains positive, with oil production expected to grow and non-oil activity projected to average 7 per cent over the medium term.

While new oil fields should strengthen public finances, it listed risks including fluctuating oil prices, overheating and climate shocks.

The fiscal deficit is expected to widen in 2026 before improving in 2027, and the IMF advised saving more oil revenue if prices remain high.

It recommended that Guyana develop a long-term fiscal strategy to maintain stability and protect oil wealth for future generations, gradually strengthening the non-oil primary balance while ensuring public spending meets development needs.

The IMF also stressed the importance of maintaining price stability and the exchange rate by carefully managing money supply and liquidity.