Guatemala: Remittances growth eases in August
September 3, 2020
Remittances totaled USD 1,050 million in August (July: USD 1,079 million), representing a 7.1% year-on-year increase. This follows July’s 13.8% year-on-year surge. On a 12-month moving average basis, remittances reached USD 10.7 billion in August, above the USD 10.6 registered in July. August’s 12-month rolling total marked a 5.9% increase from a year earlier (July: 6.5% 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 remittance 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 on the inflow of remittances.