Back

LatinNews Daily - 14 October 2020

In brief: Guatemala’s central bank revises up forecasts

* Guatemala’s central bank (Banguat) has released a new report which forecasts that the country’s GDP will contract by 1.5% in 2020 due to the impact of the coronavirus (Covid-19) pandemic. This is an improvement on its previous (June 2020) forecast that GDP would contract 2.5%. Banguat maintains its forecast that inflation will close at 3% in 2020. It also expects remittances (which totalled US$10.5bn in 2019) to rise 3.5% in 2020, compared with a 13.1% rise in 2019, as well as a 3% contraction in exports (which totalled US$11.16bn in 2019) and a 9% contraction in imports (US$19.88bn). Banguat forecasts the fiscal deficit will come in at 5.3% of GDP in 2020, up from 2.2% in 2019. Banguat attributes its improved forecasts to “fiscal and monetary stimulus measures” as well as the government’s efforts to contain the virus “without affecting economic recovery too much”. These fiscal measures included providing support to different sectors through cash transfers, salary subsidies and financing to small and medium-sized firms (which totalled around 3.4% of GDP). In June Banguat’s monetary board cut its policy interest rate by an additional 25 basis points to 1.75%, having lowered its policy interest rate by 75 basis points to 2% in March.

End of preview - This article contains approximately 217 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

LatinNews
Intelligence Research Ltd.
167-169 Great Portland Street,
5th floor,
London, W1W 5PF - UK
Phone : +44 (0) 203 695 2790
Contact
You may contact us via our online contact form
Copyright © 2022 Intelligence Research Ltd. All rights reserved.