Guatemala: Economic activity growth hits 21-month high in May
Economic activity rose 4.4% year on year in May, which was above April’s 4.0% increase. May’s result marked the joint-highest reading since August 2022. Looking at the details of the release, robust output in manufacturing and in the financial, and wholesale and retail trade sectors underpinned the upturn. Strong momentum in the communication and real estate sectors added further impetus.
Meanwhile, the trend improved modestly, with annual average growth in economic activity coming in at 3.5%, up from April’s 3.4% reading.
On the external front, merchandise exports rebounded in May, expanding 9.8% year on year (April: -0.1% yoy), the highest reading in almost two years. That said, remittances inflows growth slowed to 9.3% in the same month (April: +19.1% yoy) and plunged 5.4% in June, boding ill for household budgets.