Guatemala: Real value of remittances drops

The economic crisis in the US, combined with inflation and the value of the quetzal, is affecting a million homes that living off remittances.

Monday, October 6, 2008

Up to 27 September, the Bank of Guatemala reported that income from family remittances was $3.2 billion, an increase of only 6.4% in comparison to the same period in 2007 when the total was $3.05 billion at an increase of 14.2%; in 2006 remittance grew by 23%.
A study by the Multilateral Investment Fund (Fomin) from the Inter-American Development Bank (BID) reveals that remittances to Latin America fell in value for the first time in decades, due to a combination of effects such as the economic crisis in the US and Spain, inflation and a weak dollar. In the case of Guatemala, remittances barely grew 6.4%, way below the average of 23% for previous years, and lower than the rate of inflation (13.69%), thereby reducing the buying power of those homes that receive the remittances.

More on this topic

Remittances for $13.06 billion to Central America in 2011

March 2012

By country: Guatemala $4.37 billion; El Salvador $3.65 billion; Honduras $2.86 billion; Nicaragua $1.05 billion; Panama $592 millions; Costa Rica $530 millions.

Inter-American Development Bank Report:

Remittances to Latin America and the Caribbean rose to $61 billion in 2011

Remittances in Nicaragua's Economy

April 2012

In 2011, remittances reached $1.053 billion according to the IDB, accounting for 18% of GDP, 20% coming from Costa Rica, and the rest mainly from the U.S.

The figure comes from a study entitled ‘Remittances South-South - The Importance of the Costa Rica-Nicaragua Corridor’, by the Multilateral Investment Fund of the Inter-American Development Bank (MIF-IDB).

Remittances to Guatemala grow by 8.69 percent

July 2008

Despite the worldwide economic slowdown, remittances to families in Guatemala from members who live abroad have grown by 8.69 percent for the January-June period this year.

However, the rate of growth is down a bit from last year, when remittances increased by 12.64 percent year-over-year.

Remittances Increase by 22% in Guatemala

April 2009

After two months showing a downward trend, remittances in March totaled $344.1 million, up 22% over the same period in 2008.

The first three months of this year showed a decrease of 5.9% in comparison to an increase of 9.8% during the same quarter last year relative to 2007.

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