Guatemala: Economic activity records lowest growth since February in October
December 9, 2021
Economic activity rose 4.4% in year-on-year terms in October, which followed September's 6.3% increase. October's outturn marked the worst reading since February, but partly due to a less favorable base effect. The reading, moreover, was supported by robust growth in the trade and repair of vehicles; manufacturing; real estate; and agricultural sectors.
Lastly, annual average growth in economic activity rose to 8.0% in October from 7.8% in September.
The print suggests that the economy remained on solid footing at the outset of the fourth quarter; however, the panorama darkened in the quarter and this will likely weigh on activity in the final stretch of the year. Protests erupted in October and November, underlining social unrest. In mid-October, Congress declared a month-long siege in El Estor after civil war veterans stormed and lit on fire congressional offices. In mid-November, members of the Farmer Development Committee hindered road usage throughout the country amid blockages.