Public Debt in Guatemala
Guatemala - Public Debt
Government announces fiscal bandage to curb Covid-19 fallout
Over the course of late March and early April, Congress approved various fiscal aid packages tabled by the government to mitigate the economic fallout from the Covid-19 pandemic. The measures total roughly USD 2.3 billion (3.0% of 2019 GDP) and will be partially financed through loans from the Inter-American Development Bank and the World Bank. In addition, the government will use emergency budgetary reverses and issue treasury bonds. The packages include a host of measures including cash transfers to firms in certain sectors; salary subsidies; special funding for SMEs; income tax and social security contribution deferrals for one quarter; waiving taxes on medical supplies; greater electricity subsidies; and stepping up healthcare spending.
The measures should cushion the economic blow somewhat but will be unable to completely prevent the economy from suffering, given the strict containment measures the government has enacted to reduce the spread of the virus. Meanwhile, the government has some fiscal room to maneuver given the country’s low public debt burden and current account surplus in recent years. However, its ability to act is limited by persistent fiscal shortfalls in recent years and a decline in tax collections.
FocusEconomics Consensus Forecast panelists foresee a fiscal shortfall of 4.5% of GDP in 2020 and of 3.2% of GDP in 2021, with the economy seen contracting 0.9% in 2020, which is down 4.3 percentage points from last month’s projection. For 2021, our panelists expect the economy to grow to reach 3.2%.
Guatemala - Public Debt Data
|Public Debt (% of GDP)||24.9||25.2||25.2||26.2||26.9|
5 years of economic forecasts for more than 30 economic indicators.
|Exchange Rate||7.71||0.22 %||Jan 01|
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August 12, 2022
Consumer prices increased 1.08% in July over the previous month, coming in below the 1.83% rise logged in June.
August 5, 2022
Economic activity rose 3.3% year on year in June (May: +4.2% yoy).
July 8, 2022
Economic activity rose 4.2% year on year in May (April: +4.4% yoy).
July 8, 2022
Consumer prices increased 1.83% from the previous month in June, picking up from the 1.31% increase seen in May.
Guatemala: Central Bank tightens financial conditions in June days after the government announces emergency package
June 29, 2022
The Monetary Board of the Central Bank of Guatemala (Banguat) increased its monetary policy rate by 25 basis points from 2.00% to 2.25% at its 29 June meeting.