Guatemala Remittances July 2020

Guatemala

Guatemala: Remittances grow at a stronger pace in June

August 6, 2020

Remittances totaled a record-high USD 1,078 million in July (June: USD 963.3 billion), representing a 13.8% year-on-year increase—a five month high. This follows May's 9.2% year-on-year rise. On a 12-month moving average basis remittances reached USD 10.6 billion in July, above the USD 10.5 billion registered in June. July’s 12-month rolling total marked a 6.5% increase from a year earlier (June: +6.6% year-on-year).

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. After falling significantly in the second quarter, the strong rise in remittances inflows at the outset of the third quarter bodes well for household spending in the three months ending in September. However, the uncertain global economic backdrop and employment outlook cloud the horizon: A further uptick in joblessness in the United States would drag in the inflow of remittances.

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. After falling significantly in the second quarter, the strong rise in remittances inflows at the outset of the third quarter bodes well for household spending in the three months ending in September. However, the uncertain global economic backdrop and employment outlook cloud the horizon: A further uptick in joblessness in the United States would drag in the inflow of remittances.

FocusEconomics Consensus Forecast participants see private consumption falling 3.2% in 2020 and growing 3.7% in 2021.


Author:

Sample Report

Looking for forecasts related to Remittances in Guatemala? Download a sample report now.

Download

Guatemala Remittances Chart


Guatemala Remittances July 20 20

Note: Monthly remittances in USD million and 12-month sum of remittances in USD billion.
Source: Guatemala Central Bank and FocusEconomics calculations.


Guatemala Economic News

More news

Search form