Income from family remittances reached a new record in Guatemala’s history

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De enero a noviembre el monto acumulado por remesas familiares es de US$18 mil 39 millones, que significan unos Q140 mil 704 millones. (Foto Prensa Libre: (Foto Prensa Freepik)

With the data, Guatemala consolidates itself as the second country in the Latin American region to receive the most transfers, after Mexico, with US $ 63,739 million.

At least this is shown in the latest available figures, which show that from January to November the accumulated value of remittances is US $ 18 thousand 39 million, which means about Q140 thousand 704 million of this 11 months, according to official sources.

For the whole of 2022, the amount received was US$18,40.3 million, so it was almost reached in November.

In this trend, it is confirmed that family remittances are one of the engines of the national economy, therefore there is a dependence on the performance of the variable.

The numbers

The monthly average transfer in Guatemala from January to November was US$1,503.25 million, which means about US$50.1 million per day. That means that, within every 60 minutes, US$2 million comes in.

Remittances are also marked by the season, in relation to Easter, Mother’s Day, Father’s Day and All Saints’ Day, and tend to increase in December due to the Christmas and New Year celebrations.

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However, this year the highest income occurred in January and February, when US $ 1,811.9 million and US $ 1,861.3 million were received, respectively, and the percentage growth rate was 17.4% and 13.3%, according to statistics from the balance of payments.

In November, the monthly income was US$1,614.6 million, with a growth rate of 10%, that is, double digits, so it is expected that the amount will increase in December.

There is a new brand

Free Press consulted Álvaro González Ricci, president of the Bank of Guatemala (Banguat), about this behavior, and pointed out that, in fact, the income from family remittances amounted to US$18.39 million as of November 30, “almost equivalent to revenue seen at the end of 2022 at US$18,40.3 million.” The growth rate in November was 10%.

“We consider that by the end of 2023 the total income will be 11%, that is, more than US $ 20 billion. It is worth saying that family remittances, together with the increase in bank consumer credit, have contributed in the fact that the largest part of GDP – private consumption – will close the year with an increase of around 4%,” said the official.

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The projection means that remittances will reach Q156 billion.

Behind remittances

For Mario Arturo García, an analyst of remittance issues, the indicator continues to grow because people continue to leave the US every day.

And although growth is likely to be less robust than in the past three years, “it seems that hourly wages are decreasing and, therefore, the strength of growth is likely to decrease.”

The indicator continues to be one of the pillars of the national economy and it does not appear that we will do anything in the country to change that dynamic and “I hope we can stimulate a more productive use of this shipping flows,” he said.

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In the region

The report Family remittances to Latin America and the Caribbean 2023, from the Inter-American Dialogue entity, based in Washington DC, shows that Guatemala, after Mexico, is the country that will register the most foreign exchange earnings from family remittance this year. which is almost finished.

The analysis shows that there are 10 countries that receive the largest flows, which together represent 90% of all shipments for about US $ 146,153 million, and Guatemala has 14.2% of participation on a regional scale.

  • Mexico: US$63 thousand 739 million
  • Guatemala: US$20 thousand 333 million
  • Dominican Republic: US$10 thousand 212 million
  • Colombia: US$10 thousand 43 million
  • Honduras: US$9 thousand 399 million.
  • The Savior: US$8 thousand 17 million
  • Ecuador: US$5 thousand 44 million
  • Nicaragua: US$ 4 thousand 877 million
  • Peru: US$4 thousand 121 million
  • Jamaica: US$3 thousand 486 million