October 28, 2020

The Bank of Guatemala expects a 3.6% growth in GDP by 2020

The Bank of Guatemala said Monday that it expects the country’s gross domestic product (GDP) to grow 3.6 percent by the end of 2020, one tenth more than it reached in 2019.

The Guatemalan central state entity expects that 2020 growth will be in the range of 3.1 to 4.1%, resulting in a central average of 3.6 percent, the bank said in a statistical bulletin.

If it meets the average or the higher estimate, it will be the highest figure in the last four years, as GDP growth increased from 2.7% in 2016, to 3.0 and 3.1 in 2017 and 2018, respectively, so like the 3.5% that the country reached in 2019, one tenth more than what was planned at the beginning of the year.

The last time the country exceeded the 4 growth points was in 2015, when 4.1% was registered, lower than the 4.4% reached in 2014.

As for inflation, last year it closed at 3.41 percent, the “lowest of those observed in the months of December of the 2012-2018 period”, according to the National Institute of Statistics in the “Index of Consumer Prices, December 2019 “, published in January 2020.

In 2018, Guatemala recorded an accumulated inflation of 2.31 percent.

The former Guatemalan president Jimmy Morales said on January 14 before Congress when presenting his fourth and final report of work, hours before transmitting the mandate to the new president, Alejandro Giammattei, that the indicators of the risk rating agencies “emphasize that Guatemala has macroeconomic and fiscal strength associated with the level of GDP growth. “

Morales added that his Government got a “good management of monetary, exchange and credit policy.”

According to official figures, remittances from the United States supported almost a third of the 16 million Guatemalans, with almost a foreign exchange income at the same level as exports.


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