Q24N – Guatemala´s handling of a serious political crisis through legal means and confidence in the incoming government has allowed it to close 2015 with stable growth of 4.1%.
The Bank of Guatemala reports that “… Economic activity continues to perform in a manner consistent with the range of annual economic growth forecast for 2015, which is reflected, among other indicators, in the evolution of the IMAE, remittances and bank loans to the private sector. Although inflation continues to be influenced by the fall in international prices of oil and its derivatives, to the extent that this effect fades, inflation will start to converge to the central value of the target. ”
S21.com.gt reports that “…Its clear that the nontraumatic way in which the political and institutional crisis was overcome, including the channeling of social political tensions through elections , allowed for confidence to be maintained in economic agents and prevented production activities from being contaminated, and deluged by the sharp slope of the deceleration.
“… It is also evident, as a consequence, that there is a ‘bond of trust’ towards the government which will assume office on January 14, 2016, not because of the still unknown political and economic agenda of the elected president, Jimmy Morales, but because of the significance of the maintenance of the constitutional order, which has resulted in the ‘normal’ transfer of powers in the Executive and Legislative. ”
See report by the Banguat (spanish): “Recent Macroeconomic Performance and Prospects”
Source: Bank of Guatemala and s21.com.gt
