Guatemala: Remittances soar in October
November 5, 2013
In October, remittances from workers abroad jumped 15.5% over the same month last year, reaching USD 480 million - the highest reading on record. The figure, which came on top of the hefty 15.0% increase recorded in August, marked the highest reading in nine months.
In the 12 months up to October, remittances amounted to USD 5.1 billion, up from the USD 5.0 billion recorded in the previous month. The print represents a 7.0% expansion over the corresponding period of last year (September: +7.0% year-on-year).
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.
FocusEconomics Consensus Forecast participants see total consumption expanding 3.1% this year, which is down 0.2 percentage points from last month's estimate. For 2014, panelists expect total consumption to rise 3.7%, which is also unchanged from last month's forecast.