Guatemala: Growth in remittances surges in April
Remittances totaled USD 1,231.7 million in April, jumping 78.3% year-on-year (February: +72.2% yoy). In the 12 months up to April, remittances reached USD 12.6 billion, up from March’s USD 12.1 billion. The 12-month rolling sum marked a 20.1% increase from a year prior (March: 13.0% yoy). It should be noted, however, that the data continued to in part reflect a favorable base effect due to the impact of the coronavirus pandemic.
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. As such, the expected recovery in the U.S. amid vast government stimulus should boost remittances inflows and support the Guatemalan economy.