Guatemala: Remittances contract for first time in almost two years
July 4, 2013
In June, remittances from workers abroad fell 3.6% over the same month last year to reach USD 417 million, which marks the lowest level in four months. The figure contrasts the 5.6% rise in May and marks, in fact, the first contraction observed since July 2011.
In the 12 months up to June, remittances amounted to USD 4.9 billion, which matches the result tallied in the previous month and represents a 7.4% expansion over the corresponding period the previous year (May: +8.1% year-on-year).
Remittances account for nearly 10% of the country's GDP and are an important source of income for many Guatemalan families. Given its significance to the economy, remittances are one of the key drivers of private consumption in the country.
FocusEconomics Consensus Forecast participants see total consumption expanding 3.6% this year, which is unchanged from last month's estimate. For 2014, panellists expect total consumption to rise 4.0%.