Guatemala: GDP picks up in second quarter
October 6, 2011
In the second quarter, GDP expanded 3.7% over the same period last year, which was above the 3.1% expansion observed in the first quarter and marked the fastest pace since the last quarter of 2008. The second quarter expansion reflected a notable improvement in total consumption (+4.4% year-on-year), fuelled by faster growth in both government and private consumption. In addition, gross fixed investment accelerated from a 1.3% increase in Q1 to a 2.7% expansion in Q2. Exports of goods and services grew 6.2% in the second quarter (Q1: +4.0% yoy) and imports accelerated to an 8.4% expansion in the second quarter, well above the 5.4% increase tallied in the first quarter. As import growth outpaced that of exports, the net contribution from the external sector to overall growth deteriorated from minus 0.7 percentage points in the first quarter to minus 1.4 percentage points in the second. At the sector level, the second quarter acceleration was broad-based, with notable improvements in agriculture and the industrial sector. 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