Guatemalan Growth To Remain Steady On The Strength Of Remittances, Investment

• Strong remittance-fueled private consumption and muscular investment growth will drive real GDP growth in Guatemala over the coming quarters.
• However, heightened political risks, including popular resistance to Guatemala’s asylum agreement with the US and a violent backlash to President Alejandro Giammattei’s anti-crime crackdown, pose downside risks to economic activity.
• Fitch has revised up its real GDP growth forecast for 2020 from 3.3% y-o-y to 3.8%, due to the strong trend in remittance inflows and investment activity in recent months. This compares to estimate of 3.7% growth in 2019.

(Source: Fitch)