Guatemala: Remittances growth slows in March, but total dollar amount continue to break records

In March, remittances from workers abroad rose 11.9% over the same month last year, reaching USD 623.0 million. March’s figure was down from February’s remarkable 29.2% increase. The result marked the slowest pace of expansion in five months; however, it did mark the fifth consecutive month of double-digit growth.

In the 12 months up to March, remittances amounted to an all-time high of USD 6.5 billion. March’s cumulative reading represented a 14.1% increase over the same period of the previous year, a mild deceleration from February’s 14.9% increase.

Remittances account for nearly 10% of the country’s GDP and are an important source of income for Guatemalan households. Given their significance to the economy, remittances are one of the key drivers of private consumption in the country.

FocusEconomics Consensus Forecast participants see total consumption expanding 3.7% in 2016, which is up 0.2 percentage points from last month’s estimate. For 2017, also panelists expect total consumption to increase 3.5%.