Guatemala: Remittances growth jumps at the outset of the second quarter
May 8, 2018
Remittances from workers abroad jumped 20.3% in April from a year ago, a rapid acceleration from March’s 2.0% increase, to reach USD 769.9 million.
The 12-month moving sum of remittances edged up from USD 8.3 billion in March to USD 8.4 billion in April, marking a new record high. In addition, the 12-month moving sum of transactions through April expanded 12.5% from the same month a year earlier, picking up pace from the prior month’s 11.2% increase.
More than a tenth of Guatemala’s output derives from remittances, which are an important source of income for households in the country; the vast majority of remittances originate in the United States and broadly follow that country’s employment trends. While the broader United States economy remains healthy, boding well for remittances, uncertainty regarding the direction of U.S. immigration policy poses a downside risk.
Author: Jan Lammersen, Economist