Colorful city in Guatemala

Guatemala GDP Q2 2018

Guatemala: Economy grows at quickest pace since Q2 2016 in the second quarter

The Guatemalan economy picked up significant steam in the second quarter on the back of strong domestic demand, as the external sector weakened. In Q2 the economy grew 3.3% over the same period a year ago, up from the first quarter’s multi-year low of 2.0%.

On the domestic front, the pace of growth in private consumption nearly doubled to 5.9% year-on-year (Q1: +3.0% year-on-year), supported by double-digit remittances growth. Government expenditure and fixed investment growth also shifted into a higher gear, with public consumption growing 4.7% (Q1: +3.0% yoy) and fixed investment increasing 3.5% (Q1: +1.8% yoy).

On the external front, exports contracted at a sharper pace than in the first quarter (Q2: -5.0% yoy; Q1: -2.8% yoy) while imports swung from a 2.4% contraction in Q1 to a 5.6% expansion in the second quarter. As a result, the external sector dragged sharply on the headline GDP figure, contrasting the small positive contribution in the first quarter.

Looking ahead, robust domestic demand is expected to keep economic growth afloat in the second half of this year and next. However, U.S. immigration policy uncertainty clouds the outlook as it could affect the inflow of remittances, an important source of household income and a driver of private consumption.

Guatemala GDP Forecast

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest