Guatemala: Remittances pick up in April
May 7, 2014
In April, remittances from workers abroad rose 8.7% over the same month last year, reaching USD 491 million. April's reading came in above the 8.3% rise observed in March.
In the 12 months up to April, remittances amounted to USD 5.2 billion, which met the result recorded in the previous month. April's result marked a 7.3% increase over the same period last year, which was slightly up from the 7.2% increase observed in March.
Remittances account for nearly 10.0% 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. The Central Bank expects remittances to grow around 7.2% this year.
FocusEconomics Consensus Forecast participants see total consumption expanding 3.7% in 2014, which is unchanged from last month's estimate. For 2015, panelists expect total consumption to also rise 3.7%.
Author: Dirina Mançellari, Senior Economist