Guatemala: Public Debt Exceeds 23% of GDP

Up to August, the external and internal public debt amounted to $18.463 billion, equivalent to 23.4% of the country's Gross Domestic Product.

Monday, October 15, 2018

According to figures from the Ministry of Public Finance, in the last nine years the debt to GDP ratio has slightly varied, between 23.3% and 24.8%.

Regarding the country's indebtedness level, Abelardo Medina, senior economist at the Central American Institute of Fiscal Studies, said to Dca.gob.gt that "... It is interesting to note that, although Guatemala reports the lowest level of debt in the region and one of the lowest in the world, the evaluation given by risk rating agencies does not reach investment level. This is a product of political instability but, especially, it is due to the limited size of its fiscal revenues."

See "The Unstoppable Public Debt"

The article reviews that "... Esther Pérez Ruiz, head of mission of the International Monetary Fund (IMF) for Guatemala, in her most recent visit recommended to the authorities to reinforce Value Added Tax controls, to improve the management of the office of large taxpayers and the use of fiscal information to improve tax compliance in the country".

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