Guyana Slashes Debt as Jobs Surge and Economy Booms

A small South American nation is rewriting the rules on economic growth, proving that smart investment can create jobs and reduce debt at the same time.

Guyana has slashed its unemployment rate from 14.5% to just 6.8% in three years while simultaneously reducing the share of government revenue spent on debt payments. The transformation turns conventional economic wisdom on its head.

Before oil production began, Guyana spent seven cents of every government dollar on debt payments. Despite borrowing more money to build roads, schools, and infrastructure, that figure has now dropped to just five cents. The country accomplished this feat while remaining one of the fastest-growing economies on the planet.

The numbers tell a remarkable story. In 2021, one in seven working-age Guyanese couldn't find employment. By 2024, that figure had plummeted to fewer than one in 14. The improvement came as the country's population grew from 700,000 to 900,000 in just a decade.

The Inter-American Development Bank called Guyana "a low-debt case" and "an outlier" compared to other Caribbean nations. While countries like The Bahamas, Suriname, and Trinidad and Tobago struggle with debt burdens higher than before the pandemic, Guyana is moving in the opposite direction.

Oil revenues sparked the transformation when commercial production began in late 2019. The economy expanded by a staggering 43.8% in 2024 and another 19.3% in 2025. International Monetary Fund projections suggest growth will accelerate even further, potentially reaching 22.1% by 2028.

The Ripple Effect

The boom isn't just about oil anymore. Non-oil sectors of Guyana's economy grew by 15% in 2025, up from 13% the previous year. The expansion is spreading into agriculture, services, construction, and manufacturing as new jobs and income flow through the broader economy.

The infrastructure investments financed by government borrowing are building the foundation for sustained growth beyond the oil boom. New roads connect communities, modern schools prepare the next generation, and public facilities support a rapidly growing population.

Other developing nations are watching closely. Guyana's approach demonstrates that resource wealth, when managed carefully, can fund transformation without creating a crippling debt burden. The key lies in using borrowed money to build productive assets while revenues are growing fast enough to make debt payments more manageable over time.

Economic growth is projected to continue at double-digit rates through 2030 before moderating as oil production stabilizes. By then, Guyana will have completed a decade-long transformation from a struggling economy to a regional success story.

A country of fewer than one million people is showing the world how to turn natural resources into broadly shared prosperity.