Despite Oil Wealth, Guyana Still Among Region’s Poorest – IADB Report
By Tiana Cole | HGP Nightly News
A recent report titled “10 Findings About Poverty in Latin America and the Caribbean” has placed Guyana in a troubling category alongside Venezuela, Honduras, and Guatemala, identifying these countries as having over 50% of their population living in poverty, with more than 30% facing extreme poverty.
The report, published by the Inter-American Development Bank (IADB), stands in stark contrast to Guyana’s reputation as one of the fastest-growing economies in the world, thanks to offshore oil production that began in 2020.
According to the International Monetary Fund (IMF), Guyana’s real GDP more than doubled between 2020 and 2024, driven by massive crude exports. However, that growth has yet to trickle down to the majority of the population, especially in rural and hinterland regions, where jobs and infrastructure remain limited.
The IADB warned that the capital-intensive nature of the oil sector contributes little to direct job creation, leaving many citizens outside the reach of newfound national wealth.
“If one’s policy objectives were to reduce the number of countries with high rates of poverty, these are obvious candidates,” the report stated.
While countries like Chile (11%) and Uruguay (14%) enjoy comparatively low poverty rates, Guyana’s figures remain alarmingly high despite the oil boom. The IADB emphasized that high poverty levels may make social assistance targeting easier, but also highlight the urgent need for transparent and effective poverty reduction programs.
Adding to the pressure, civil society groups and citizens are intensifying calls for greater investments in education, healthcare, affordable housing, and job creation, especially for marginalized communities.
Without deliberate and inclusive economic policies, the report warns that Guyana risks becoming a textbook example of the “resource curse”—where wealth from natural resources fails to improve the lives of ordinary citizens.
