Immediately before freedom in 1966, Guyana was in the early stages of developing its resources. The development continued under an economic plan drawn up by British, United States, and Canadian experts. Manufacturing, which was on a small scale in the late 1960s, was expanded in the 1970s, but in the late 1980s the economy of Guyana was controlled by agriculture and service industries. The national budget in 1996 included revenue of $247 million and expenditure of $287 million.

Government management of the economy has become direct and remarkable. During the 1970s the government nationalized U.S. and Canadian bauxite holdings; in 1976 it nationalized the large holdings of the Booker McConnell companies in Guyana, which included coastal sugarcane plantations as well as an array of light manufacturing and commercial enterprises. By the mid-1980s it was around that the government controlled directly more than 80 % of Guyana's economy. All nationalized businesses have been reorganized under the Guyana State Corporation. The state-owned Guyana Sugar Corporation controls the sugarcane plantations, and the Guyana Mining Enterprise Ltd. was accomplished to oversee local mineral production.

Severe drought and political turmoil contributed to Guyana's negative growth of -1.8% for 1998 following six straight years of growth of 5% or better. Growth came back to a positive 1.8% in 1999 and 3% in 2000. Underlying growth factors have included development in the key agricultural and mining sectors, a more favorable atmosphere for business initiative, a more realistic exchange rate, a moderate inflation rate, and continued support by international organizations. President JAGDEO, the former finance minister, is taking steps to reform the economy, including drafting an investment code and restructuring the inefficient and unresponsive public sector. Problems include a shortage of skilled labor and a deficient infrastructure. The government must persist in efforts to manage its sizable external debt and attract new investment.