A tiny country in Latin America set to become the economic powerhouse of 2026, surpassing regional giants.
The growth projections for Latin America and the Caribbean have been published, and the numbers reveal an unexpected picture. In 2026, the leading economic power will not be a major industrial nation with millions of inhabitants. It will be Guyana, a small country with just over 800,000 residents that has experienced a significant boom thanks to its oil reserves.
The Rise of Guyana
Over the past decade, Guyana has emerged as a dynamic player in the energy sector following the discovery of vast oil reserves by ExxonMobil and Hess. The country currently produces over 600,000 barrels of oil per day, with expectations to exceed one million barrels by 2027. This rapid growth, coupled with high international oil prices, has significantly boosted public revenues and transformed its trade balance.
Despite the success, experts caution about the risks associated with Guyana’s heavy dependence on oil and its vulnerability to price fluctuations.
Other Growing Countries
Aside from Guyana, other nations with promising growth projections for 2026 include the Dominican Republic, Panama, and Argentina. These countries are being driven by sectors such as tourism, financial services, and foreign trade recovery.
Additionally, countries like Paraguay, Guatemala, and Suriname are taking advantage of a more stable regional environment and increased demand for raw materials.
Economic Challenges
On the other hand, Mexico is expected to experience modest growth of 1.4%, while Brazil, Chile, and Uruguay hover around 2.2%. Overall, the region is projected to maintain a moderate growth rate of 2.5%, which is lower compared to other regions like Asia and Africa.
The question remains whether Guyana can sustain its remarkable growth primarily driven by oil. Experts emphasize the importance of investing in education, technology, and diversification to avoid the “resource curse” and ensure long-term economic stability.
As Guyana emerges as a new economic epicenter in the region, the real challenge lies in transforming its oil wealth into sustainable development for the future.
