Credit to Private Sector grows by 7.7% in first half of 2025

– Finance Ministry says Govt fostering of investment climate bearing fruit

In the first half of 2025, credit to the local Private Sector grew by 7.7 per cent to some $485.4 billion, according to Guyana’s Mid-Year Report for this year.
The report was presented to the National Assembly on Monday by Senior Minister with Responsibility for Finance Dr Ashni Singh.

According to the report, credit to business enterprises operating in the services, manufacturing, and agriculture sectors increased by 4.9 per cent, 12.4 per cent, and 1.1 per cent to $165.6 billion, $48.7 billion, and $31.9 billion, respectively.
Growth in the services sector resulted largely from credit to other services and telecommunications growing by 5.7 per cent and 24.7 per cent, respectively. Moreover, the report noted that expansion in the manufacturing sector was supported primarily by lending for other manufacturing and other construction and that engineering increased by 76.9 per cent and 8.9 per cent, respectively.
In a statement on Wednesday, the Finance Ministry pointed out that this increase in credit to the Private Sector shows that the Guyana Government’s policy of fostering a climate for investment over the last years continues to bear fruit.
“Since returning to office in 2020, one of the policies of the People’s Progressive Party/Civic (PPP/C) Government is fostering a climate for investment so that the Private Sector, inclusive of both large and small businesses, would thrive, thereby allowing for more job creation and opportunities for citizens as well as supporting growth in the non-oil sectors and the economy as a whole,” the missive detailed.
It went on to note too that the local banking and financial sectors have also been undergoing major transformation as well.

Confidence in Guyana’s economy
Only last week, Citibank – a leading global financial institution – announced that it will be establishing a representative office in Guyana. The Ministry said this announcement was a clear indication that global financial institutions now also have confidence in the country’s economy and are willing to partner with the Government to invest and be part of Guyana’s continuing growth and development.
In a statement on Friday last, the United States (US)-based multinational financial services company attributed its decision to set up an office in Guyana to the country’s exponential economic growth and pointed to its increasingly attractive investment climate.

These developments, according to the Ministry, are also a direct result of the strong leadership of President Dr Irfaan Ali in positioning Guyana as a premier and stable destination for international investment and further underscore the PPP/C’s Government’s efforts to engage with the global community and build a resilient, modern, and diversified economy.
Meanwhile, in addition to credit to business enterprises, credit to households also rose by 7.3 per cent to $51.8 billion in the first six months of this year, with notable growth of 20.3 per cent observed in lending for motor cars.
Moreover, real estate mortgages expanded by 11.4 per cent to $173.5 billion, driven by increases in mortgages granted for private dwellings and industrial and commercial properties.
The PPP/C Government has already indicated its intention to remain on the path of fostering a climate for investment as the economy continues to thrive.
Its 2025 Manifesto states that as part of Financial Literacy and Inclusion, the administration will, over the next five years, implement a comprehensive National Financial Literacy and Financial Inclusion Strategy aimed at deepening understanding of basic financial and investment concepts, banking and financial services and widening participation in the formal financial system; and work with commercial banks to expand banking services to those who are currently unbanked by improving the ease with which persons can open a bank account, apply for a loan and process transactions, all online – something that is already being rolled out.
Additionally, the Government committed to promoting the use of agent banking networks to facilitate easy access to banking services in smaller, more remote, and hard-to-reach communities, especially in the hinterland, which are currently unserved or underserved by the banking system; and also promoting the use of digital payment systems and financial technology solutions, including digital banking and mobile wallets, to improve the ease of access to financial services nationwide, bring more people into the formal financial system, and reduce cash dependency across the economy.
Meanwhile, also in keeping with another of its 2025 Manifesto commitments to establish a development bank to provide microcredit loans to small and medium enterprises (SMEs), President Ali, in early October, assured that the establishment of this development bank is moving forward. As part of the commitment, the Government will also be providing training and support to build capacity amongst the Private Sector, especially SMEs, so that they can prepare credible business plans and successful loan applications to help them to graduate to the formal financial system.