GEORGETOWN, Guyana – Guyana says real economic growth is expected to remain strong with the oil and gas sector continuing to be the main driver of overall growth, supported by sustained dynamism in the broader non-oil economy.
Finance Minister Dr. Ashni Singh said that this year, overall growth is projected to be 16.2 per cent, and growth in the non-oil economy is projected to be 10.8 per cent.
Delivering the GUY$1.5 trillion (One Guyana dollar=US$0.004 cents) budget to Parliament on Monday night, Singh said that the agriculture, forestry, and fishing sector is projected to grow by 7.6 percent this year, with expansion expected across all subsectors.
He said the sugar subsector is projected to expand by 67.9 per cent, with a target of 100,041 tonnes of sugar expected to be produced, while the rice sector is expected to grow by 1.8 per cent, with a production target of 827,500 tonnes of rice set for the year.
The other crops subsector is projected to grow by 9.8 per cent this year, with anticipated growth in production and cultivation across all major crop categories.
Singh told legislators that the livestock subsector is projected to expand by 2.6 per cent, also with higher production across all categories and that the fishing subsector is also projected to expand, with a growth target of two per cent for 2026, with higher marine and aquaculture production expected.
He said the forestry subsector is projected to grow further this year by 7.6 per cent, with a 2026 production target of 533,592 cubic metres of timber.
The Finance Minister said that the mining and quarrying sector is projected to grow by 17.6 per cent this year, with continued expansion in the oil and gas sector supported by growth in gold mining, bauxite mining, and other mining and quarrying.
“The oil and gas sector is projected to expand further by 17.9 per cent this year. The four producing FPSOs in the Stabroek Block are projected to produce almost 307 million barrels of crude oil – at a rate of approximately 840,000 bpd.”
Singh said the gold and bauxite mining subsectors are expected to expand by 5.4 per cent and 19.3 per cent, respectively,
“in 2026. In gold mining, declarations for this year are targeted at 510,450 ounces, with higher projected declarations from all categories of operators. Bauxite production is targeted at approximately 4.8 million tonnes for 2026, with higher output expected from both large producers in the industry”.
Singh told Parliament that manufacturing, construction are also expected to show growth and “this year, we expect to see continued growth in key service industries such as financial and insurance activities, wholesale and retail trade and repairs, transport and storage, professional, scientific and technical services, and administrative and support services.
“These industries are projected to grow by 11 per cent, eight per cent, 5.3 per cent, 23.2 per cent, and 6.9 per cent, respectively,” he added.
He said that this year the overall balance of payments is expected to record a surplus of US$151.3 million, mainly on account of a projected reduction in the capital account deficit.
Singh said that the current account is expected to record a surplus of US$1.7 billion this year, with a projected merchandise trade balance of US$8.8 billion.
“Total export earnings are expected to grow by 1.8 per cent to US$20.5 billion, with export earnings from crude oil projected to grow by 0.9 per cent to approximately US$18 billion reflecting projected price moderation.
“Non-oil exports are projected to increase by 8.6 per cent to US$2.5 billion, mainly on account of higher anticipated export earnings of gold and bauxite, with greater output and favourable prices. At the same time, import payments are anticipated to increase by 14.2 per cent to US$11.7 billion in 2026, with the arrival of the Errea Wittu FPSO expected in the second half of the year.”
Singh said that the capital account is forecasted to record a lower deficit of US$1.6 billion, underpinned by higher projected disbursements and FDI inflows in 2026.
