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January 27, 2026
January 27, 2026
The oil and gas sector remained a key driver of economic growth in 2025, despite emerging global headwinds such as declining oil prices and an uncertain external environment.
Finance Minister Ashni Singh said, while presenting Budget 2026, that the sector expanded by an estimated 21 per cent last year, with crude oil production reaching 261.1 million barrels.
Growth was driven by increased output from the Liza Unity and Prosperity floating production, storage and offloading (FPSO) vessels, which continued to underpin overall economic performance.
“Our overall real economic growth continues to be supported by a strong expansion in oil and gas activity,” Singh said, adding that the sector remains a critical pillar of national development.
However, he cautioned that global conditions are becoming less favourable. Crude oil prices declined in 2025, averaging US$69 per barrel, and are projected to fall a further 15.2 per cent to around US$59 per barrel, reflecting slower demand growth and expanding global supply.
Despite softer prices, Singh said Guyana has maintained strong economic performance due to its policy framework.
“Despite the challenging and uncertain global context, our robust policy framework has enabled us to demonstrate consistently that economic growth can be strong and steady in the most testing of circumstances,” he said.
The minister also pointed to continued oil-related investments during 2025, including the arrival of a new FPSO, which contributed to higher imports of capital goods. Growth in capital goods imports was driven largely by increased purchases of mining machinery linked to the FPSO’s arrival, he said.
While oil and gas remain central to growth, Singh said the government is focused on leveraging the sector to support broader economic development, noting sustained expansion across the non-oil sectors of the economy.
He also said interest rates eased in 2025, with the US Federal Reserve implementing three separate 25-basis-point rate cuts, bringing rates to their lowest level in three years.
Rates are expected to remain steady in the first quarter of 2026, with the potential for further reductions later in the year.
In the wider extractive industries, mining and quarrying expanded by an estimated 21 per cent, supported largely by continued growth in oil and gas, Singh said.
