Guatemala: Economic activity records best result on record in March
Economic activity grew 6.9% year-on-year in March (February: +2.8% yoy). March’s print marked the best result on record. However, it should be noted that the headline print was flattered in part by a supportive base effect, as economic activity contracted sharply in the same month a year prior due to the Covid-19 crisis. Nonetheless, activity in March 2021 was driven by the trade and repair of vehicles; manufacturing; agricultural; and construction sectors.
On a 12-month rolling bases, however, economic activity contracted 0.9% in March, up from February’s 1.8% drop.
Looking ahead, economic activity is likely to continue expanding at a record-high pace in the months ahead due to favorable base effects. Moreover, the gradual easing of restrictive measures at home and abroad should revitalize domestic and external demand, further supporting activity.