Guatemala: Growth in remittances slows in May
June 6, 2014
In May, remittances from workers abroad rose 3.6% over the same month last year, reaching USD 494 million. May’s increase came in well below the 8.7% rise observed in April and marked the slowest increase since November 2013.
In the 12 months up to April, remittances amounted to a record high USD 5.3 billion, which slightly overshot the USD 5.2 billion recorded in the previous month. May’s result marked a 7.1% increase over the same period last year, which was slightly down from the 7.3% increase observed in April.
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