Guyana is projected to remain the fastest-growing economy in the Americas in 2026, driven by its booming oil sector, while several of the region’s largest economies are expected to post far slower growth amid global uncertainty and domestic economic pressures.

According to the International Monetary Fund’s World Economic Outlook 2026 , Guyana’s economy is forecast to expand by an extraordinary 23% next year, extending one of the fastest sustained growth streaks in the world.

The South American nation has undergone a dramatic economic transformation since major offshore oil discoveries by a consortium led by ExxonMobil in 2015. Oil production has rapidly turned Guyana into one of the world’s newest energy exporters, reshaping public finances and infrastructure investment.

The Dominican Republic is forecast to record the second-fastest growth rate in the Americas at 4.5%, followed by Argentina and Panama at 4% each.

Argentina’s projected rebound comes after years of economic instability marked by inflation, currency depreciation and debt restructuring. The IMF has noted signs of stabilisation tied to fiscal tightening and economic reforms introduced by President Javier Milei’s administration.

Several Central American economies, including Paraguay, Guatemala, Honduras and Costa Rica, are also expected to outperform larger regional economies, supported by tourism, remittances and relatively resilient domestic demand.

By contrast, Venezuela is forecast to remain the region’s weakest-performing economy with GDP expected to contract by 3% in 2026. Haiti is projected to shrink by 1%, reflecting ongoing political instability, insecurity and humanitarian challenges.

Among the hemisphere’s largest economies, growth forecasts remain relatively subdued. The United States is expected to expand by 2.1%, while Brazil is projected to grow by 1.9%, according to IMF estimates.

Mexico and Canada are both forecast to grow by 1.5%, reflecting slowing industrial demand, tighter financial conditions and weaker global trade momentum.

The IMF has warned that high interest rates, geopolitical tensions and slowing global demand continue to weigh on economic activity worldwide, particularly for commodity exporters and heavily indebted economies.

The ICJ is set to begin oral hearings on May 4 in the dispute over Essequibo, a resource-rich region administered by Guyana but claimed by Venezuela. Guyana is asking the court to uphold the 1899 arbitral award that fixed the current boundary, while Venezuela insists the matter should be handled under the 1966 Geneva Agreement.

Rodriguez also announced an oil production agreement with Italian energy firm Eni, saying it would support Venezuela’s economic recovery and public welfare. Interior Minister Diosdado Cabello, speaking at the same event, blamed U.S. sanctions for damaging the country’s economy and rejected claims that he holds assets abroad.

An example of this trend is Chile, where José Antonio Kast , a right-wing conservative, won the December 2025 presidential runoff with about 58% of the vote, defeating leftist candidate Jeannette Jara.

His victory marks one of the clearest rightward political shifts in the country since its transition to democracy in 1990, and places Chile alongside other South American states now governed by conservative leaders.

Kast joins leaders such as Ecuador’s Daniel Noboa, El Salvador’s Nayib Bukele, and Argentina’s Javier Milei to show a regional shift away from leftist dominance.

The trend was further highlighted in October, when Bolivia elected centrist Rodrigo Paz, bringing nearly 20 years of socialist rule to an end.

Yet this rightward shift is not without its challenges and critics. Scholars like Ken Roberts, a professor at Cornell University, warned of potential political polarisation and institutional strains as new administrations push their agendas amid divided electorates ahead of the run-off.

“A Kast victory would reinforce the recent surge of right and far-right political actors in Latin America, who are strongly supported by the Trump Administration in the US. But it would also continue a much longer pattern of volatile anti-incumbent voting in Latin America's turbulent democratic waters. This latter pattern suggests that any political shift to the right in Chile and neighbouring countries is likely to encounter strong political headwinds and underlying fragilities in a regional context of acute polarisation and severely atrophied political institutions,” Roberts said.

The continent's electoral calendar continues with significant votes ahead in countries like Peru, Colombia and Brazil, and observers will be watching closely to see whether the current momentum carries forward or stalls.

The ruling People’s Progressive Party/Civic (PPP/C) has announced significant changes to its parliamentary lineup, introducing new faces for the upcoming 13th Parliament. Prominent members such as Jaffarally and Ramsaran will not be returning, signalling a generational and strategic shift in the party’s representation. This move reflects the government’s effort to refresh its political image and create opportunities for younger, dynamic voices to shape legislative debates. The reshuffle also underscores President Irfaan Ali’s emphasis on continuity with renewal, balancing experienced leadership with emerging talent to maintain political stability while addressing evolving challenges.

Parliament reconvenes within constitutional time frame

President Ali confirmed that Guyana’s Parliament will reconvene within the constitutionally mandated period, an assurance meant to reinforce the government’s adherence to democratic processes. This commitment comes against the backdrop of heightened public interest in governance, transparency, and the timeliness of parliamentary business. By emphasising respect for constitutional norms, the administration seeks to strengthen public trust and demonstrate political maturity. The timely resumption of parliamentary sessions is expected to pave the way for legislative debates on crucial issues, including fiscal reforms, social policies, and infrastructural development.

Debate on Minister Bharrat’s cash transfer comments

A controversy has emerged over whether Natural Resources Minister Vickram Bharrat knowingly misled the public when he claimed that direct cash transfers from oil revenues are a “failed model.” His statement has sparked public debate, as many citizens view cash transfers as a potential mechanism to directly benefit households from Guyana’s growing oil wealth. Critics argue that dismissing such policies without adequate evidence sidelines opportunities for equitable wealth distribution. Supporters of Bharrat’s position contend that long-term investments in infrastructure, health, and education yield more sustainable growth than short-term cash handouts. The matter highlights ongoing tensions over how best to manage Guyana’s burgeoning oil economy.

Boost to financial system security and transparency

Guyana’s financial system has received a timely upgrade aimed at strengthening security and transparency. This development is crucial as the country continues to attract global investment, particularly from the oil and gas sector. By improving regulatory safeguards, monitoring mechanisms, and anti-money laundering frameworks, the government signals its readiness to integrate more fully with international financial systems. Enhanced transparency not only improves investor confidence but also mitigates risks of illicit flows and corruption, as long-standing concerns in resource-rich nations. The reform is expected to create a stronger foundation for sustainable economic expansion and better governance of public funds.

Tier 1 ranking in U.S. TIP report maintained

Guyana has successfully maintained its Tier 1 ranking in the U.S. State Department’s annual Trafficking in Persons (TIP) Report. This status reflects the country’s continued compliance with global standards for combating human trafficking, including prevention, prosecution, and victim support measures. Remaining in Tier 1 is both a diplomatic win and a moral imperative, as it demonstrates Guyana’s commitment to human rights and international cooperation. The recognition also bolsters the country’s image on the global stage at a time when its growing oil wealth places it under greater scrutiny. For local communities, the ranking provides reassurance that anti-trafficking measures remain a priority amidst broader political and economic transitions.