Guatemala: Economy accelerates in Q2
October 7, 2014
In the second quarter, the economy expanded 4.3% over the same period of the previous year. The expansion marked an improvement compared to the revised 3.5% increase (previously reported: +3.4%) tallied in the first quarter.
The acceleration in Q2 reflects an improvement in the external sector, whereas domestic demand decreased compared to the previous quarter. Government consumption increased by 6.3%, which represented a slowdown from Q1’s 8.1% expansion. However, private consumption ticked up to a 4.4% rise from Q1’s 4.1% increase. In addition, fixed investment performed worse than in the previous quarter, falling from a 3.7% expansion to a 2.0% increase in Q2.
On the external side of the economy, exports of goods and services grew 7.1%, which was markedly higher than Q1’s 4.4% expansion. Conversely, imports decelerated to a 4.1% expansion (Q1: +4.9% year-on-year). As a result, the external sector’s net contribution to overall growth swung from minus 0.6 percentage points in Q1 to plus 0.3 percentage points in Q2.