Guatemala: Economic activity weakens in July
October 10, 2011
In July, economic activity increased 1.8% over the same month last year, according to the monthly indicator for economic activity (IMAE, indice Mensual de la Actividad Economica). The reading was below the 2.1% increase observed in June (previously reported: +2.4% year-on-year) and represented the slowest pace since October 2010. As a result of the weaker July expansion, the trend continues to point downwards, with annual average growth in economic activity dropping from 3.4% in June to 3.1% in July, suggesting that the recovery process is losing momentum. On a monthly basis, economic activity expanded 0.21% in seasonally adjusted terms, which was a notch below the 0.22% increase observed in June and marked the slowest rate of expansion since May 2009. Meanwhile, the Central Bank expects the economy to grow between 2.9% and 3.5% this year and between 3.3% and 3.7% in 2012.
Author: Ricardo Aceves, Senior Economist