Guatemala: Growth in remittances eases but remains elevated in June
July 8, 2021
Remittances totaled USD 1,362.5 million in June, jumping 41.4% year-on-year (May: +47.8% yoy). In the 12 months up to June, remittances reached USD 13.4 billion, up from May’s USD 13.0 billion. The 12-month rolling sum marked a 28.3% increase from a year prior (May: 25.5% yoy). It should be noted, however, that the data continued to in part reflect a favorable base effect due to the impact of the coronavirus pandemic.
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.