Guatemala: Remittances fall sharply in July
August 4, 2016
In July, remittances from workers abroad fell 6.6% over the same month last year, dropping to USD 536 million. July’s figure, which contrasted June’s 14.6% increase, marked the steepest contraction since July 2011.
In the 12 months up to July, remittances amounted to an all-time high of USD 6.8 billion, unchanged from June’s figure. July’s cumulative reading represented a 15.4% increase over the same period of last year but was down from June’s 17.3% increase.
Remittances account for nearly 10% 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.
Author: Christopher Mc Innes, Economist