Guatemala Expects to Finish the Year With USD 20 Billion in Remittances

Remittances sent from the United States represent 92.3% of the total sent by Guatemalans abroad.

by Pamela Contreras

Guatemala City, by Brenda Larios -AGN-. The Bank of Guatemala -Banguat- and the Ministry of Public Finances -Minfin- forecast that Guatemala will close in 2023 with USD 20 billion received in remittances.

According to Alvaro González Ricci, Chairman of Banguat, this amount is equivalent to 20% of the country’s gross domestic product -GDP-, and it would also represent a growth of 11.5 % compared to last year’s registered amount.

Remittances are a vital component of the Guatemalan economy, as they have a significant effect on different financial and economic aspects of the country’s economy.

Remittance Goal

According to Minfin and Banguat’s calculations, these resources could represent 20.3% of GDP by 2024.

Remittances come mainly from the United States, where approximately 2.8 million Guatemalans live, and based on Minfin’s statement, they represent 92.3% of the total sent by Guatemalans living abroad.

Guatemala is the country that receives the most foreign exchange from remittances in Central America and the second largest in Latin America. It is also among the countries with the highest remittances as a percentage of GDP.

People’s Benefit

These transfers significantly contribute to the basic needs of thousands of Guatemalan households and help improve the quality of life of the families that receive them.

The country has an inter-institutional coordination mechanism for the use of remittances. The strategy’s main purpose is coordinating and integrating experiences among citizens and their families for community development.

Edwin Martínez Cameros, Minister of Public Finance, emphasized that these resources are the result of the efforts of Guatemalan migrants who bring capital to the country’s economy and economic growth.

The Innovation and Development Plan, the basis of President Alejandro Giammattei’s General Government Policy 2020-2024, states that macroeconomic stability and control of variables such as inflation would improve the quality of life of Guatemalans.

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