Guatemala: Economy picks up in Q1
July 10, 2015
In Q1 2015, the economy expanded 4.8% over the same period of the previous year. The expansion marked an improvement compared to the 4.4% increase tallied in Q4 2014.
The acceleration in Q1 reflects an improvement in domestic demand, whereas the external sector decreased compared to the previous quarter. Government consumption increased by 6.9%, which represented an acceleration from Q4’s 6.6% expansion. Private consumption also ticked up to a 5.0% rise from Q4’s 4.1% increase. Meanwhile, fixed investment performed worse than in the previous quarter, falling from a 9.3% expansion in Q4, to a 3.6% increase in Q1.
On the external side of the economy, exports of goods and services grew 3.5%, which was significantly lower than Q4’s 8.3% expansion. Conversely, imports inched down from a 4.1% expansion (Q4: +4.2% year-on-year). As a result, the external sector’s net contribution to overall growth swung from plus 0.6 percentage points in Q4 to minus 0.7 percentage points in Q4.
Author: Robert Hill, Economist