Guatemala: Economic activity growth wanes in June
Economic activity rose 2.9% compared to the same month of the previous year in June, which was a deterioration from May’s 4.4% increase. Looking at the details of the release, robust output in the hospitality, financial, and wholesale and retail trade sectors underpinned growth. Strong momentum in the communication and real estate sectors was also supportive of overall activity.
As a result, the trend pointed down, with the annual average growth of economic activity coming in at 3.3% in June, down from May’s 3.5%.
On the external front, merchandise exports lost some momentum in June, expanding 5.7% year on year (May: +8.8% yoy). In the same month, remittances inflows plunged 5.4% annually (May: +9.3% yoy), boding ill for household budgets. More positively, the remittances inflows rebounded 10.7% in July, likely aiding private spending at the outset of Q3.