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Brazil is run over economically! The South American country, often forgotten, is the one that will grow the most economically; see which one

Written by Alisson Ficher
Published 25/01/2025 às 19:50
Guyana surpasses Brazil with record oil-driven economic growth. See how the country became a standout in South America.
Guyana surpasses Brazil with record oil-driven economic growth. See how the country became a standout in South America.

A little-known South American country is leading regional economic growth with impressive numbers. Driven by oil exploration and strategic planning, Guyana's economy is expected to grow 12,3% in 2025 and 15,7% in 2026. Meanwhile, Brazil faces challenges and a timid growth of 2,2%.

Brazil, often seen as the economic powerhouse of South America, is losing its prominence in an area that has always given it prominence: economic growth.

Amid a global scenario of uncertainty and instability, a small, often forgotten, neighboring country is surprising with impressive numbers that surpass those of the region's largest economy.

Get ready to discover Guyana, Latin America's new economic star, and understand how it is becoming a unique success story amid regional challenges.

Guyana emerges as economic leader

According to the World Bank's latest projections, Guyana's economic growth in 2025 will be impressive 12,3%, followed by an even bigger jump in 2026, reaching 15,7%.

These numbers represent a unique performance on a continent where most countries face economic slowdown, inflation and other challenges.

Guyana owes this prominence to oil exploration, a sector that completely transformed its economy.

Since 2019, when ExxonMobil began operating in the region, the country has gone from being a simple exporter to the fifth largest oil supplier in Latin America.

By 2024, production had already reached 645 thousand barrels per day, consolidating its prominent position in the global energy market.

The oil revolution

The oil sector is the main driver of the Guyanese economy, but the local government is seeking to diversify its sources of revenue.

Investments in education, health, transport and incentives for tourism and agriculture show the concern in using oil profits in a sustainable way.

This strategy aims to ensure that the wealth generated serves the entire population, reducing social inequalities and preparing the country for future challenges.

In addition, social programs are being implemented to improve the population's quality of life, while international partnerships strengthen economic infrastructure.

These efforts position Guyana as an example of strategic natural resource management in South America.

What about Brazil?

While Guyana advances, Brazil faces modest economic growth.

With a forecast of only 2,2% in 2025, largest economy in the region deals with the consequences of restrictive monetary policies.

The slowdown reflects internal challenges, such as high inflation and the need for fiscal adjustments.

Other countries are also facing difficulties. Argentina, for example, is beginning to emerge from a prolonged recession, but the 5% growth projected for 2025 is still considered timid.

Already Chile and Peru remain highly dependent on Chinese demand, which directly influences their export markets, especially in the mining sector.

Regional challenges

South America, as a whole, faces a series of barriers that hinder sustainable growth.

Among the main factors are geopolitical tensions, changes in global trade, natural disasters and political instability in several countries.

Furthermore, dependence on external markets, such as China, worsens the region's economic vulnerability.

Countries like Brazil and Peru have to deal with still-high inflation and restrictive monetary policies, while smaller nations like Colombia are trying to sustain themselves based on domestic consumption and private investment.

The World Bank analysis reinforces the need for strategies to diversify South American economies and reduce external risks.

How Guyana became an example

The case of Guyana shows that, even in a challenging global scenario, it is possible to grow with strategic planning.

The combination of investments in infrastructure, social programs and economic diversification is transforming the country into a regional powerhouse.

However, Guyana’s success is no guarantee of long-term stability.

Responsible management of petroleum resources will be crucial to avoid common pitfalls such as “Dutch disease,” which harms economies overly dependent on natural resources.

Reflection on the economic future of South America

While Guyana continues to be an example of accelerated growth and strategic planning, other South American countries need to redouble their efforts to overcome internal and external challenges.

Will Brazil be able to regain its economic prominence or will it have to reinvent itself in the face of new regional powers?

Attention to the particularities of each nation will be essential to promote more balanced and sustainable development across the continent.

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Alisson Ficher

Journalist graduated in 2017 and working in the field since 2015, with six years of experience in print magazines, stints on broadcast TV channels and over 12 online publications. Specialist in politics, jobs, economics, courses, among other topics. Professional registration: 0087134/SP. If you have any questions, want to report an error or suggest a topic on the topics covered on the site, please contact us by email: alisson.hficher@outlook.com. We do not accept resumes!

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