Guatemala´s Economic Stability Emphasized

The political crisis does not seem to have affected the economy, where the risk noted is related to the imbalance in government accounts, which has reached 25% of GDP.

Monday, October 12, 2015

A report by the Association for Research and Social Studies of Guatemala (ASIES) concludes that "... despite the crisis in the public sector due to corruption that led to the arrest of the former vice president Roxana Baldetti, and to the resignation of former President Otto Perez Molina to face justice, Guatemala's economic growth may not be affected, in part because of the behavior of remittances, and the sustainability over time of the macroeconomy, among other things. "

In the view of Carlos Gonzalez Arevalo, senior economist at the Department for Economic Research and Consulting Association for Research and Social Studies (ASIES) the economy of "Guatemala is stable. We hope that the political crisis will not affect the economic sphere, the only question in macroeconomics is the fiscal balance. "

The fragility of government finances is clear and comes from the approval which was made last year for public spending in 2015, which was planned using foundations that were not accurate in relation to income considered at that time.

See full report (only in Spanish)

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