Guatemala: Growth in remittances picks up speed in June
July 10, 2014
In June, remittances from workers abroad rose 15.5% over the same month last year, reaching USD 482 million. June’s increase came in well above the 3.6% rise observed in May and marked the fastest increase since October 2013.
In the 12 months up to June, remittances amounted to a record high USD 5.3 billion, which met the figure recorded in the previous month. June’s result marked an 8.8% increase over the same period last year, which was up from the 7.1% increase observed in May.
Remittances account for nearly 10.0% 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. The Central Bank expects remittances to grow around 7.2% this year.
Author: Dirina Mançellari, Senior Economist