Poverty in Perspective

Dec 10, 2025 Letters

Dear Editor,

Recent commentaries have circulated a figure claiming that 58% of Guyanese live in poverty. This estimate is not only inaccurate for 2025 but also not based on Guyana’s latest official household survey results. It appears to rely on a regional model that used outdated data and an unusually high international poverty line, and its public presentation as current data is misleading. Critics who argue that macroeconomic numbers look favorable while ordinary people do not benefit from growth may find support in such figures, but the underlying data present a very different picture.

Since 2020, Guyana has experienced what is widely regarded as the world’s fastest-growing economy. GDP per capita rose from just under US$7,000 in 2020 to nearly US$30,000 by 2024, a surge that reflects both oil-led expansion and substantial gains in non-oil sectors. Non-oil growth has been robust, driven by construction, retail, services, agriculture, and transport, the very sectors where every day Guyanese earn their livelihoods. Widespread growth is accompanied by significant gains in household well-being.

Wages for public-sector employees have gone up, pension payments have grown, and financial grants for schoolchildren have not only been reinstated but also enhanced. More than 30,000 families have received house lots or support for home construction, and when these assets are incorporated into household income, they contribute meaningfully to both wealth and overall income levels. The International Monetary Fund’s most recent review explicitly states that social transfers have increased disposable income and reduced the poverty rate. The World Bank has echoed these conclusions, noting that although more surveys are needed for precision, the trajectory is toward lower poverty and higher incomes, particularly in the wake of the COVID-19 shock.

If benefits were not reaching the poor, one would expect to see stalled consumer spending, weaker mortgage uptake, slower growth in small-business activity, and persistent or rising food insecurity. Instead, the data point in the opposite direction: household spending is up, mortgage uptake is at record levels, small-business activity has expanded, and indicators of food insecurity have declined since 2021. These outcomes are not mere slogans; they are measurable realities.

Of course, challenges remain. Inequality and the cost of living continue to press on many households. Nevertheless, it is inaccurate to claim that growth has bypassed the poor. The evidence indicates that more Guyanese than ever before are gaining access to income, housing, education, and opportunity. The overarching message is clear: progress is real, and it is reaching people across the country.

Dr. Tilokie Depoo
Economist

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Dr. Tilokie Depoo, Economist, Letters, poverty

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