Guatemala: Growth in remittances picks up pace in February
Remittances eased to USD 1,262.7 million in February, with annual growth picking up pace as remittance inflows expanded 33.9% year-on-year in the month (January: +30.2% yoy). Furthermore, on a 12-month rolling basis, remittances increased 37.6% year-on-year in February, up from January’s 36.4% 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.
Analysts at the EIU added:
“We expect inflows workers’ remittances from abroad to keep growing in 2022, especially as planned infrastructure projects in the US are executed, supporting private consumption.”