Commodities January 26, 2026

Guyana Forecasts 16.2% Economic Expansion in 2026 as Oil Sector Remains Central

Finance ministry projects continued hydrocarbon-led growth alongside robust non-oil gains and an infrastructure-focused fiscal plan

By Priya Menon
Guyana Forecasts 16.2% Economic Expansion in 2026 as Oil Sector Remains Central

Guyana’s economy is projected to expand by 16.2% in 2026, moderating from an estimated 19.3% growth in 2025, with the oil and gas industry continuing to be the main engine of expansion. Finance Minister Ashni Singh outlined forecasts for oil production, cargo exports, and revenues, while highlighting sustained non-oil sector gains and a government strategy that leans on oil receipts to finance large infrastructure and housing initiatives.

Key Points

  • Oil and gas remain the primary driver of growth - projected oil sector expansion of 17.9% in 2026 and an average production of 840,000 bpd.
  • Non-oil sectors posted robust gains - non-oil growth of 14.3% driven by agriculture, mining, construction and services, supporting broader economic resilience.
  • Government intends to use oil revenue to fund infrastructure and housing - plans include building 40,000 homes over five years and expanding road networks, affecting construction and public works sectors.

Guyana is expected to record real economic growth of 16.2% in 2026, a slowdown from the 19.3% expansion anticipated for 2025, according to figures presented by the finance ministry. The government continues to attribute the bulk of the expansion to the oil and gas sector, which remains the dominant contributor to aggregate output.

In the budget presentation, Finance Minister Ashni Singh set out projections for the hydrocarbon sector in 2026. The ministry forecasts oil sector growth of 17.9% for the year, down from 21% in 2025 and markedly lower than the 57.7% growth recorded in 2024. Average crude production for 2026 is projected at 840,000 barrels per day (bpd).

The ministry anticipates 309 crude oil cargo exports next year, up from 260 cargoes in the most recent year, and estimates oil receipts of roughly $2.79 billion. For context in the ministry's presentation, a single crude cargo is estimated to contain about one million barrels.

Officials signaled that the oil sector will remain central to growth in 2026, noting that production from a fifth offshore project is scheduled to commence later in the year. The finance ministry also cited recent capacity increases by operators - ExxonMobil raised its production capacity in Guyana to more than 900,000 bpd in the prior year - and noted that a project planned for development during the current year could lift capacity further to as much as 1.15 million bpd.

Alongside hydrocarbon-driven expansion, the government is widely expected to keep an infrastructure-heavy orientation in its budgetary approach. Policy intentions described in the presentation include deploying oil revenue to support a five-year housing program to build 40,000 homes and to expand road networks across the country.

Singh highlighted that 2025 marked the sixth consecutive year of double-digit growth for the economy, even as the pace of increase in oil production and exports eased relative to earlier years. Non-oil activity also contributed meaningfully to overall expansion, with the non-oil sector estimated to have grown by 14.3% in the most recent year. That non-oil growth was driven primarily by agriculture, mining, construction and the services industries.

"Our overall real economic growth continues to be supported by strong expansion in oil and gas activity, as well as sustained growth across the non-oil sectors of the economy," the finance ministry said in its budget presentation.

Crude output for the full year of 2025 was reported at 261.1 million barrels, up from 225.4 million barrels in 2024. The increase followed the start of operations on a fourth offshore oil project in August, operated by a consortium led by ExxonMobil. The ministry noted that all of Guyana's oil production is controlled by that ExxonMobil-led group.

The presentation also reiterated Guyana's status as the newest oil producer in Latin America and noted that, in recent years, the country has become the region's fifth-largest crude exporter, ranking after Brazil, Mexico, Venezuela and Colombia.


Sections below summarize key takeaways, sector impacts and risks identified in the ministry's projections.

Risks

  • Concentration of production under a single operator consortium - all of Guyana's oil output is controlled by the ExxonMobil-led group, which concentrates operational and market risk in the upstream sector.
  • Timing and delivery risk for new projects - the fifth offshore project's scheduled start later in the year and the planned new project to raise capacity to up to 1.15 million bpd represent execution dependencies for sustaining projected growth.
  • Volatility in oil production and exports - growth in oil production and exports has slowed compared with some earlier years, which could affect revenue flows that underpin fiscal plans and infrastructure spending.

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