According to the January 2026 Global Economic Prospects Report released by the World Bank Group, Guyana is projected to remain the Caribbean’s fastest‑growing economy over the medium term. Photo: News Source

According to the January 2026 Global Economic Prospects Report released by the World Bank Group, Guyana is projected to remain the Caribbean’s fastest‑growing economy over the medium term.

The report stated that the Caribbean sub‑region is expected to expand by 5.2 per cent in 2026 and 6.6 per cent in 2027. These regional averages are driven largely by Guyana’s sustained expansion in oil production and broader economic activity, it was noted.

Excluding Guyana, the sub-region is projected to grow by about 2.9 percent and 3.7 percent, supported by tourism and related services.

Individually, Guyana’s economy is projected to grow by 19.6 per cent in 2026 and 21.9 per cent in 2027.

The report stated that risks to the regional outlook remain tilted to the downside. Rising trade barriers, weaker external demand, and an unexpected decline in global commodity markets could further constrain growth and policy space.

“A key downside risk is an escalation of trade barriers. Further tariff increases or a trade restrictive outcome to the USMCA review in 2026 would weigh on regional activity. Given its tight economic linkages to the United States, Mexico is particularly vulnerable, while related supply-chain disruptions could have broader negative spillovers to other economies. More generally, higher-than-anticipated trade barriers and persistently heightened global uncertainty could weigh on external demand by curbing growth in major trading partners, further dampening regional investment and exports,” the report stated.

The World Bank further stated that elevated debt levels and current account deficits in the region increase exposure to financial market stress and limit the ability of macroeconomic policies to respond to shocks.

It noted that the growing incidence of climate-related events poses a significant threat to key sectors and could exacerbate existing vulnerabilities.

On the upside, the World Bank group noted, rapid advances in artificial intelligence could support growth by spurring investment in digital infrastructure and by raising productivity through broad technology adoption.