Mid-Year Report 2025: Dip in fuel prices, expanded credit, lower inflation reflective of Government’s broad-based social investments

Prices at the pump for gasoline, diesel, and kerosene dropped sharply in the first half of 2025, while total credit to the Private Sector grew by 7.7 per cent to $485.4 billion at the end of the first half of 2025, and credit to households rose by 7.3 per cent to $51.8 billion, driven largely by a 20.3 per cent surge in lending for motor cars, according to the Finance Ministry’s Mid-Year Report 2025.
The report highlights that gasoline, diesel, and kerosene prices were reduced by 20.9 per cent, 32.8 per cent, and 34 per cent, respectively, compared with end-2024 levels, bringing significant relief to Guyanese producers and consumers.
This decline in energy costs helped to moderate overall inflationary pressures, with consumer prices rising by 2.9 per cent at the end of June 2025 compared to December 2024. The 12-month inflation rate stood at 4.2 per cent, and the Ministry now projects overall inflation to reach 3.1 per cent for 2025.
The report attributes the contained inflation partly to Government measures aimed at easing the cost of living and increasing disposable incomes. Among these initiatives are the introduction of no new taxes between 2020 and 2025, a doubling of the income-tax threshold to $130,000 per month, and reductions in income tax rates.
Additionally, the Government has implemented targeted relief measures, including cash grants of $100,000 to every adult citizen, doubling the old-age pension from $20,500 in 2020 to $41,000 currently, and raising public assistance grants to $22,000 monthly.
Further, the continued zero-per cent excise tax on petroleum products has been maintained to cushion the impact of volatile global oil prices – a measure estimated to save consumers $560 per gallon.
Finance Minister Dr Ashni Singh reaffirmed the Government’s commitment to balancing fiscal prudence with inclusive growth.
“The Government remains committed to prudent management of our natural resources while continuing to invest in people and communities so that the benefits of our national transformation are shared by all Guyanese. While challenges and risks remain, our Government will continue to ensure that these are met with resolve, charting a steady course toward resilient prosperity,” the Minister stated.
The Mid-Year Report 2025 also pointed to strong private-sector lending, signalling sustained economic confidence and business expansion. Business lending expanded, with loans to the services sector increasing by 4.9 per cent, manufacturing by 12.4 per cent, and agriculture by 1.1 per cent.
Real estate mortgages recorded robust growth of 11.4 per cent to $173.5 billion, reflecting higher demand for private dwellings as well as industrial and commercial properties. Overall, net domestic credit stood at $1.0155 billion, up 17.7 per cent compared to December 2024.
According to the Ministry, the Government’s broad-based social investments have continued to strengthen resilience across communities. The report notes progress in education, with advances toward universal access and expansion of technical and vocational training, and in health, through the completion of regional hospitals, expanded diagnostic services, and the ongoing digitalisation of patient care systems.
Social protection initiatives – including cash grants, school uniform grants, and continued increases in pensions and public assistance – have boosted household incomes, particularly among vulnerable populations.
In Guyana, the Mid-Year Report is a statutory requirement under the Fiscal Management and Accountability Act (FMAA) and states that the Finance Minister must submit a half-year report comparing actual performance to budget, updating projections, and outlining any measures proposed by the Government.