Guatemala: Remittances expand at slower pace in August
September 5, 2013
In August, remittances from workers abroad rose 3.4% over the same month last year, reaching USD 456 million. The figure came in below the 5.6% increase recorded in July.
In the 12 months up to August, remittances amounted to USD 4.9 billion, matching the result from the previous month. The print represents a 5.8% expansion over the corresponding period last year (July: +6.2% year-on-year) and marks the slowest increase in 14 months.
Remittances account for nearly 10% of the country's GDP and are an important source of income for many Guatemalan families. Given their significance to the economy, remittances are one of the key drivers of private consumption in the country.
FocusEconomics Consensus Forecast participants see total consumption expanding 3.3% this year, which is unchanged from last month's estimate. For 2014, panelists expect total consumption to rise 3.9%.
Author: Armando Ciccarelli, Head of Data Solutions