Guatemala: Growth in remittances accelerate in August
September 9, 2022
Remittances rose to USD 1,642.7 million in August and annual growth accelerated to 18.3% year on year in the month (July: +1.2% yoy). Furthermore, on a 12-month rolling basis, remittances increased 23.3% year on year in August, down from July’s 24.5% rise.
Remittances are an important source of income for Guatemalan households, and they tend to follow labor market changes in the United States, where the majority of remittances originate. The US economy will continue to boost remittances and household expenditure in Guatemala. However, economic development in the United States is expected to slow, which may weigh on inflows and consequently private spending. The conflict in Ukraine adds another negative risk.