Guatemala: Growth in remittances accelerates in February
Remittances totaled USD 942.9 million in February, growing 16.7% year-on-year (Janaury: +8.6% yoy). In the 12 months up to February, remittances reached USD 11.5 billion, up from January’s USD 11.4 billion. The 12-month rolling sum marked a 7.2% increase from a year prior (January: 7.1% yoy).
Remittances are a key source of income for Guatemalan families and tend to follow employment trends in the United States, where the majority of remittance payments originate from. As such, the expected recovery in the U.S. amid vast government stimulus should boost remittances inflows and support the Guatemalan economy.
Analysts at the EIU added: “The economy will recover in 2021 driven by a recovery in the US and record-high remittances inflows, which will support private consumption.