Guatemala: Growth in remittances cools in March
Remittances rose to USD 1,493.1 million in March, but annual growth cooled as remittance inflows expanded 16.1% year-on-year in the month (February: +33.9% yoy). Furthermore, on a 12-month rolling basis, remittances increased 33.2% year-on-year in March, down from February’s 37.6% rise.
Remittances are a key source of income for Guatemalan families and tend to follow labor market trends in the United States, where the majority of remittance payments originate from. The economic recovery in the U.S. amid fiscal stimulus is therefore expected to buoy remittances and support the Guatemalan economy; private consumption is a key engine of growth for the economy. However, the war in Ukraine clouds the economic outlook and could weigh on remittances.