Guatemala: Growth in remittances eases slightly in November

Remittances from workers abroad increased 17.1% over the same month a year earlier in November, slightly down from the 18.6% year-on-year expansion recorded in October. In November, remittances reached a total value of USD 757.1 million and growth in the 12-month moving sum accelerated to 12.5% from 11.7% in October.

Remittances are a major source of income in Guatemala and tend to follow employment trends in the United State, where most remittances originate. As such, remittances are expected to continue increasing at a healthy, albeit more moderate, pace on the heels of moderating economic growth in the United States. Moreover, a key downside risk to remittances growth is uncertainty over U.S. immigration policy.

Guatemala Private Consumption Forecast

FocusEconomics Consensus Forecast participants see private consumption expanding 3.2% in 2019, which is down 0.1 percentage points from last month’s forecast. For 2020, our panelists expect private consumption to increase 3.5%.