Guatemala: Remittances grow at a stronger pace in June
Remittances totaled a record-high USD 1,078 million in July (June: USD 963.3 billion), representing a 13.8% year-on-year increase—a five month high. This follows May’s 9.2% year-on-year rise. On a 12-month moving average basis remittances reached USD 10.6 billion in July, above the USD 10.5 billion registered in June. July’s 12-month rolling total marked a 6.5% increase from a year earlier (June: +6.6% year-on-year).
Remittances are a key source of income for Guatemalan families and tend to follow employment trends in the United States, where the majority of remittance payments originate from. After falling significantly in the second quarter, the strong rise in remittances inflows at the outset of the third quarter bodes well for household spending in the three months ending in September. However, the uncertain global economic backdrop and employment outlook cloud the horizon: A further uptick in joblessness in the United States would drag in the inflow of remittances.
Remittances are a key source of income for Guatemalan families and tend to follow employment trends in the United States, where the majority of remittance payments originate from. After falling significantly in the second quarter, the strong rise in remittances inflows at the outset of the third quarter bodes well for household spending in the three months ending in September. However, the uncertain global economic backdrop and employment outlook cloud the horizon: A further uptick in joblessness in the United States would drag in the inflow of remittances.