Guatemala: Growth in remittances continues on upward trend
April 7, 2014
In March, remittances from workers abroad rose 8.3% over the same month last year, reaching USD 459 million. March's figure came in below the 9.3% rise tallied in February.
In the 12 months up to March, remittances amounted to USD 5.2 billion, which met the result seen in the previous month. The print marked a 7.2% increase over the same period last year, which was slightly up from the 7.0% increase observed in February.
Remittances account for nearly 10.0% of the country's GDP and are an important source of income for Guatemalan households. Given their significance to the economy, remittances are one of the key drivers of private consumption in the country. The Central Bank expects remittances to grow around 7.2% this year.
FocusEconomics Consensus Forecast participants see total consumption expanding 3.7% in 2014, which is unchanged from last month's estimate. For 2015, panelists expect total consumption to also rise 3.7%.
Author: Dirina Mançellari, Senior Economist