Guatemala's Fiscal Deficit: 2019 Forecasts

Between 2014 and 2017, the fiscal deficit increased to an average of 1.4% of GDP, and for this year the authorities plan to end at 1.6% and in 2019 it could increase to 2.5%.

Friday, November 30, 2018

Representatives of the Ministry of Public Finance informed that some of the increase in the fiscal deficit foreseen for next year will be caused by the fact that the General Budget of Income and Expenditure of the State for Fiscal Year 2019, which will ascend to $11,390 million, will allow assigning more resources for infrastructure maintenance.

Victor Martinez, Minister of Finance, said to that "... Since 2015, the deficit was below 2%, even close to 1% of Gross Domestic Product (GDP). The resources for the following year guarantee the continuity of projects such as the Libramiento de Chimaltenango and the CA-2 Oriente-Occidente."

On the other hand, Sergio Recinos, president of the Banco de Guatemala, said that "... the low deficit of the last three years generated a temporary gap to increase indebtedness, which would not affect the sustainability of public debt in 2019, estimated at 24.5% of GDP."

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