Guatemala: Growth in remittances drops sharply in April
May 14, 2015
In March, remittances from workers abroad rose 2.7% over the same month last year, reaching USD 503.9 million. April’s figure marked a significant deceleration from the 21.2% rise tallied in March and was the lowest reading in 17 months.
In the 12 months up to April, remittances amounted to USD 5.7 billion. The figure, which coincided with March’s result, shows that the indicator is stable at a multi-year high. April’s cumulative reading represented an 8.9% increase over the same period of last year (March: +9.5% year-on-year).
Remittances account for nearly 10% 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.
Author: Robert Hill, Economist