Despite years of rapid, oil-driven economic expansion, poverty remains severe and widespread in Guyana, according to a 2025 report titled Ten Findings about Poverty in Latin America and the Caribbean by the Inter-American Development Bank (IDB)
According to the IDB, approximately 58 per cent of Guyana’s estimated population of 780,000 people—about 452,400 individuals—are living in poverty. Of that number, 32 per cent, or roughly 249,600 people, are classified as living in abject poverty. Local analysts maintain that the actual figures may be higher, pointing to the rapidly rising and increasingly unbearable cost of living, stagnant wages, and the absence of comprehensive social protection measures to cushion households.
The report further shows that poverty disproportionately affects specific groups. Afro-descendants, Indigenous peoples and children are between 11 and 15 percentage points more likely to be poor than the general population. The IDB noted that poverty across Latin America and the Caribbean is unevenly distributed and continues to affect Indigenous and Afro-descendant communities at higher rates.
These findings contrast sharply with Guyana’s recent economic performance. The overall economy grew by 7.5 per cent, while the non-oil economy expanded by 13.8 per cent in the first half of 2025, according to the government’s mid-year economic report.
Speaking during a live broadcast on Wednesday, Minister of Tourism, Industry and Commerce Susan Rodrigues described the growth figures as exceptional by global standards. “By any measure, that is a remarkable growth percentage. Nowhere else in the world are we seeing this type of expansive growth,” she said.
Rodrigues added that Guyana has now recorded five consecutive years of broad-based economic expansion, attributing the performance to the leadership of President Irfaan Ali.
However, economic commentators and social policy analysts argue that while the administration highlights growth figures, the lived reality for many Guyanese tells a different story. Since first oil production in 2019, Guyana has earned more than US$6 billion in oil revenues, yet poverty has not only increased but remains widespread, while the cost of basic goods, housing, utilities, and transportation continues to climb, with little state intervention to soften the impact on vulnerable households.
Public servants did not receive the customary year-end back pay, and a promise made by President Ali in August during the election campaign—that every adult aged 18 and over would receive a $200,000 Christmas cash grant—was not fulfilled.
In the face of deepening hardship, opposition political parties – People’s National Congress Reform (PNCR) and We Invest in Nationhood (WIN) and sought to provide some relief through Christmas socials and toy distributions for disadvantaged families. At the same time, the governing People’s Progressive Party (PPP) also participated in similar outreach activities, utilising state resources to provide meals and toys during the holiday season.
Policy analysts say these seasonal interventions highlight the scale of the socio-economic challenges facing the country. They argue that with equitable and transparent management of oil revenues, citizens would not have to depend on charity or temporary assistance to afford food, celebrate Christmas, or provide basic comforts for their children.
The socio-economic consequences of persistent poverty, observers warn, include food insecurity, poor health outcomes, reduced educational attainment, rising household debt, and increased social stress. These pressures are being compounded by an escalating cost of living, which analysts describe as unsustainable for many families in the absence of targeted subsidies, wage adjustments or meaningful social safety nets.
Several analysts have concluded that the prevalence of abject poverty amid unprecedented national wealth reflects policy and governance shortcomings rather than economic constraints. They contend that Guyana’s development trajectory risks deepening inequality unless growth is matched by deliberate measures to protect livelihoods and improve living standards.
