Guatemala: GDP accelerates in 2014
March 12, 2015
According to preliminary estimates from the Central Bank, GDP expanded 4.0% in the full year 2014. The figure came in above the 3.7% tallied in the previous year and marked the highest rate of growth in three years.
The acceleration seen in 2014 was mainly due to strong growth in total consumption, fixed investment and exports. On the domestic front, total consumption increased from a 3.6% rise in 2013 to a 4.0% increase in 2014. Growth in private consumption inched up from 3.9% to 4.0%. Conversely, government spending slowed from a strong 5.8% in 2013 to a mild 0.7% in 2014. Finally, fixed investment picked up strongly last year, posting a solid 3.0% increase (2013: +1.8% yoy).
Exports of goods and services accelerated from a 5.8% rise in 2013 to a robust 7.2% increase in 2014. Imports also gained momentum last year, expanding 4.6% (2013: +3.9% yoy). Because exports grew faster than imports, the external sector’s net contribution to overall growth rose from a flat contribution in 2013 to 0.2 percentage points in 2014.
Author: Cecilia Simkievich, Economist