Guatemala: Economic activity posts quickest growth in six years in December
February 12, 2021
Economic activity rose 5.3% in December (November: +2.5% yoy). The print marked the best result since December 2014, and highlights that the economy continued to gain traction at the close of last year. The uptick in December was driven by growth in the trade and vehicle repair; manufacturing; agricultural; and, communication sectors.
On a 12-monht rolling basis, economic activity contracted 1.8% in December, up from the 1.9% drop recorded in November.
Looking at the fourth quarter as a whole, activity firmed as the economy reopening almost completely in early October. In addition, strengthening remittances growth should have boosted household consumption. That said, the economy likely did not avoid contraction in the year as a whole. Turning to this year, economic growth is poised to return on the back of firming domestic and foreign demand amid the roll out vaccination programs and the gradual easing of restrictive measures abroad.