Guatemala: Remittances grow at slowest pace in over a year
October 5, 2012
In September, remittances from workers abroad rose a mild 0.3% over the same month last year to USD 366 million. The figure came in well below the 7.8% gain observed in August and marked the lowest growth rate since July 2011. In the last 12 months up to September, remittances amounted to USD 4.7 billion, which was unchanged from the result seen in the previous month. In addition, the figure represents an 8.1% expansion over the corresponding period last year, a notch down from the 8.2% increase seen in August. Owing to the continuous improvement witnessed in previous months, annual remittances are still hovering above the previous peak of USD 4.4 billion reached in September 2008. Remittances account for approximately 9% of 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.