Guatemala: Growth in remittances accelerate in September
October 7, 2022
Remittances eased to USD 1,597.2 million in September from USD 1,642.7 million, but annual growth rose to 22.9% in September from 18.3% in August. Furthermore, on a 12-month rolling basis, remittances increased 23.2% year on year in September (August: +23.3% yoy).
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.