Guatemala Presents Macroeconomic and Financial Progress

The country maintains a positive projection of the Gross Domestic Product from 2020 to the present.

by Victor Cojulún

Guatemala City, by Brenda Larios -AGN- The Central American Institute of Fiscal Studies -ICEFI- and Voice of America highlighted Guatemala’s macroeconomic and financial advances during 2023.

According to a report presented on September 5, Guatemala has the lowest public debt in Central America, with an amount of USD 22.593 billion or 30% of the Gross Domestic Product (GDP).

Prudent macroeconomic policies and significant remittances inflow have provided the country with substantial reserves to defend itself against a challenging international context and tightening global financial conditions.

Gross Domestic Product 

The Bank of Guatemala -Banguat- reported that the country maintains a positive GDP projection from 2020 to the present.

The Monetary Board reported in a conference on June 29 that the GDP has remained at an average year-on-year variation of 3.5% from 2010 to 2022. 

In 2020, the GDP contracted by -1.8% due to the national and international impact of the coronavirus pandemic. Meanwhile, in 2021, it recorded an increase of 8%.

Furthermore, in 2022, the GDP remained at 4.1%. For 2023 and 2024, this variation is expected to reach 3.5%.

Meanwhile, according to the International Monetary Fund’s -IMF- report on the Chapter IV Consultation, Guatemala remains an economy with multiple opportunities to attract foreign investment. The report highlights significant factors such as Guatemala’s effective crisis management, resilient economy, prudent policies, low fiscal deficits and debt-to-GDP ratio, high international reserves, and strong remittance inflows.

During a press conference, Banguat authorities presented the main findings of the official report from the cited institution.

The evaluation was conducted in March of this year. In it, the IMF acknowledged the resilience of the national economy, among other aspects.

Economic Outlook 

The document states that Guatemala’s economic outlook remains positive. However, there are still levels of uncertainty and downside risks from the external environment.

The report underscores the country’s authorities’ goal of achieving investment-grade status and attracting foreign investment, which could create new opportunities.

According to the evaluation, the IMF indicates that the Guatemalan economy continued to show resilience in 2022, with economic growth surpassing its potential.

In this regard, the IMF emphasized the need to maintain prudent fiscal policies and a monetary policy that continues to contribute to keeping inflation expectations around the target set by the monetary authority.

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