Guatemala: Economic activity strengthens in August
November 10, 2011
In August, economic activity expanded 4.9% over the same month last year, according to the monthly indicator for economic activity (IMAE, indice Mensual de la Actividad Economica). The reading was well above the revised 0.8% increase recorded in July (initially reported: +1.8% year-on-year) and represented the strongest expansion since April. As a result of the stronger August expansion, economic activity resumed its upward trend, with annual average growth rising from 3.1% in July to 3.2% in August, which suggests that economic activity is gaining momentum. On a monthly basis, economic activity expanded 0.22% in seasonally adjusted terms, which was a notch below the 0.23% increase recorded in July and marked the slowest rate of expansion since May 2009. As result of the tropical depression 12-E that struck the country in October, the government declared a state of emergency and, according to preliminary estimates from the Ministry of Agriculture, the total costs in the agricultural sector are likely to reach GTQ 499.3 million (USD 63.7 million). The Central Bank expects the economy to grow between 2.9% and 3.5% this year and between 3.3% and 3.7% in 2012.
Author: Ricardo Aceves, Senior Economist