Guatemala: Economy accelerates in Q1
July 11, 2014
In the first quarter, the economy expanded 3.4% over the same period of the previous year. The expansion marked an improvement compared to the 3.1% increase tallied in the fourth quarter.
The acceleration in Q1 reflects an improvement in domestic demand, whereas the external sector performed worse compared to the previous quarter. Government consumption rebounded from a 1.9% decrease in Q4 to an 8.0% rise in Q1. In addition, private consumption accelerated to a 3.9% increase (Q4: +3.0% year-on-year). Fixed investment also performed better and increased 3.7% (Q4: +0.4% yoy).
On the external side of the economy, exports of goods and services grew 4.7% in Q1, which was down from the 7.6% increase recorded in Q4. Conversely, imports accelerated to a 4.9% expansion (Q4: +3.5% yoy). As a result, the external sector’s net contribution to overall growth swung from plus 0.6 percentage points in Q4 to minus 0.6 percentage points in Q1.
Author: Dirina Mançellari, Senior Economist