Guatemala: Economic activity growth outpaces the pre-Covid trend in March
Latest reading: Annual economic activity growth accelerated to a 10-month high of 4.4% in March, outpacing both February’s 3.5% and the pre-pandemic 10-year average of 3.5%. Looking at the details of the release, domestic trade, construction and manufacturing had positive contributions to the headline reading.
As a result, the trend pointed up, with annual average growth in economic activity ticking up to 3.9% in March (February: +3.7% yoy).
On the external front, merchandise exports surged 19.5% in March, improving from February’s 8.5% rise and likely reflecting front-loading ahead of higher tariffs from the U.S., a key trade partner. In the same vein, in March, remittances inflows growth remained elevated, clocking an 18.8% increase (February: +19.2% yoy) as fear of deportation among Guatemalans living in the U.S. mounted; the short-lived surge in remittances bodes well for household budgets.