The behavior of credit to the private sector, public spending, imports and remittances would explain the higher growth expected for the economy this year.
The Bank of Guatemala (Banguat) reported that this year's economic growth is projected to range between 3% and 3.8%, with a central value of 3.4%, up from the 3.1% reported during 2018.
In 2018, the construction sector in Guatemala registered a nearly 4% growth, which reinforces the upward trend that has been reported since 2011.
Data from the Guatemalan Chamber of Construction (CGC) detail that from 2011 the sector has reported growth rates, reaching its highest level in 2014 when the recorded increase was 4.4%.
The growth of family remittances, the recovery of credit to the private sector and the upturn in investment in capital goods would determine a better economic performance this year.
In a forum organized by the Chamber of Industry of Guatemala, representatives of the Bank of Guatemala (Banguat) and Central American Business Intelligence (CABI), agreed that this year the country's economy could register a better performance than in 2018.
The Bank of Guatemala expects next year's economic growth to be better than in 2018, which would be caused by higher public spending and the growth of family remittances.
Authorities of the Bank of Guatemala (Banguat) informed that the Guatemalan economy will close 2018 with a nearly 3% growth, however, for next year is expected that the increase in GDP will be in the range between 3% and 3.8%.
Explained by the dynamics of economic activity and the flow of family remittances, the Central Bank estimates that this year the economy will grow between 3% and 3.8%.
According to the authorities at Banco de Guatemala (Banguat), by 2019 the expectation is that the economy will grow between 3.1% and 4.1%, and in relation to inflation for this year and next, it is expected that the Growth rate will remain close to 4%.
Financial executives point out that in order to regain confidence in the economy, the country is urging improvements in legal certainty and a reduction in political instability.
Sergio Recinos, president of the Bank of Guatemala (Banguat), told Prensalibre.com that "... this year we must improve matters related to legal certainty for investors andpolitical stability.These same business people have expressed in indices that measure the climate of confidence their concern that there should be 'clear rules'."
The Central Bank has reduced the outlook for economic growth this year, arguing that there has been a slow recovery of the global economy and a slowdown in some sectors at the local level.
The Bank of Guatemala has reduced the expected growth rate for 2017 from a range of 3% to 3.4% to a range between 3% and 3.4%.At the local level it is estimated that one ofthe activities that will show reduced performance is construction, whose expected growth rate fell from 3.6% to 3.4%.