Guatemala: Remittances grow at noticeably softer pace in January
February 8, 2019
Remittances from workers abroad rose 8.4% over the same month a year prior in January, which marked a much softer pace of expansion compared to December’s 17.1% year-on-year increase. Remittances came in at a total value of USD 688.1 million, the lowest value since February 2018. Nonetheless, growth in the 12-month moving sum was stable at December’s 13.4% in January.
Remittances are an important source of income in Guatemala and tend to follow employment trends in the United States, where most remittances originate. Consequently, remittances are expected to continue increasing at a healthy, albeit more moderate, pace on the heels of moderating economic growth in the United States. Moreover, a key downside risk to remittances growth is uncertainty over U.S. immigration policy.
Guatemala Private Consumption Forecast
FocusEconomics Consensus Forecast participants see private consumption expanding 3.4% in 2019, which is unchanged from last month’s forecast. For 2020, our panelists expect private consumption to increase 3.6%.
Author: Jan Lammersen, Economist