Guatemala: Remittances moderate sharply in August
September 6, 2012
In August, remittances from workers abroad rose 7.8% over the same month last year to USD 441 million, which was well below the 20.7% gain observed in July. In the last 12 months up to August, remittances amounted to USD 4.7 billion, which was slightly up from the USD 4.6 billion seen in the previous month. The figure represents an 8.2% expansion over the corresponding period last year, down from the 8.3% increase seen in July. Owing to the continuous improvement witnessed in recent months, annual remittances are moving further away from their 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.