Guatemala: Growth in remittances jumps in September
Remittances totaled USD 1,051 million in September, representing a 17.8% year-on-year jump, which follows August’s 7.1% year-on-year increase. On a 12-month moving average basis, remittances reached USD 10.8 billion in September, above the USD 10.7 registered in August. September’s 12-month rolling total marked a 6.0% increase from a year earlier (August: 5.9% year-on-year).
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.
Remittances rose strongly in the third quarter on average, swinging from the second quarter’s sharp drop. Consequently, private consumption is expected to have returned to growth in the three months ending in September amid the reopening of the economy. However, the uncertain global economic backdrop and employment outlook cloud the horizon: A further uptick in joblessness in the United States would drag on the inflow of remittances.