Guatemala: Economy rebounds in 2010
March 2, 2011
According to preliminary estimates from the Central Bank, GDP expanded 2.6% in 2010, accelerating over the 0.5% increase registered in 2009. The acceleration in 2010 was bolstered by a rebound in domestic demand, which bounced back from a 1.4% contraction in 2009 to a strong 4.8% expansion in 2010. Total consumption accelerated from a 1.6% expansion in 2009 to a 4.0% increase in 2010, while gross fixed investment contracted 1.7%, after tumbling 14.0% in 2009. Exports of goods and services swung from a 6.1% contraction in 2009 to a 7.8% expansion. Imports, which profited from rebounding domestic demand, accelerated at the fastest pace in more than a decade, growing 13.7% in 2010, contrasting the 9.3% contraction in 2009. At the sector level, the acceleration over 2009 reflected faster growth in both the services and industrial sectors, whereas agriculture slowed. The Central Bank expects the economy to expand between 2.6% and 3.2% this year.
Author: Ricardo Aceves, Senior Economist