The economy grew by 4.1% from April to June, thanks to consumption and the dynamism of almost all productive activities

In the midst of a negative international context due to international conflict, global inflation and interest rate hikes by the United States Federal Reserve (Fed), in addition to the uncertainty component, The Guatemalan economy as measured by gross domestic product (GDP) grew by 4.1% in the second quarter of the year (April, May and June).

The indicator reflects the return of the national economy to its normal levels, as it reached 4.5% in the first quarter of the year (January, February, March), while it reached 4.7% in the fourth quarter of 2021.

During the second quarter of the year, the economy achieved 139 thousand and 959.9 million QQ, according to a report by the Bank of Guatemala (BGU), which made the figures official on Friday, October 7.

Last August, members of the Monetary Council (JM) conducted a review of the indicators and confirmed that GDP growth will remain in the range of 3 to 5 percent, with a central or core value of 4 percent, down from 8 percent from 2021.

What explains that?

The report details that 4.1% in the second quarter of this year is less than what was observed in the same period in 2021 which was 15.4% “driven by the increase in all components of internal demand such as final consumption of households in general. Consumption and final government investment, as well as imports and exports of goods and services “.

However, with regard to the origin of production, the participation of the observed increase in sectors such as accommodation and food service activities stands out by 15.7%; finance and insurance (10.2%); Vehicle trade and repair (3.9%); manufacturing industries (3.5%); real estate activities (5.2%); agriculture (3.5%); That these activities as a whole accounted for 70% of the rate of variance in that period.

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Of the 17 activities measured, only mining and quarrying recorded a negative performance of -10.7%, and the rest had a positive attitude.

In the trade and repair of vehicles, it explains the internal demand for goods of national and imported origin, which is consistent with sales indicators that recorded increases in sales of cars, agricultural raw materials, foodstuffs, fuel, and electrical appliances. . For home use, pharmaceutical, medical, cosmetic among others.

In the manufacturing industries, this is due to the significant increase in the food and beverage division, especially the processing of sugar and non-alcoholic beverages, the processing and preservation of poultry meat and other grinding and fermentation products, as a result of the increased internal and external demand.

In manufactured goods, there was more activity in the production of soaps, detergents and cleaning preparations, as well as the manufacture of plastic products; Industrial machinery and equipment.

In real estate activities, this is due to the increase in the number of completed and available homes by the construction sector, which has affected housing and office rents.

In the activities of accommodation and food services, this is explained by the increase shown by catering services, as a result of an increase in domestic consumption, and the same situation is observed in hotel services, due to the increase in the number of national and foreign tourists.

In financial and insurance activities, the increase is due to an increase in net interest received and actual commissions received by banks and finance companies, regardless of the positive performance of insurance activities.

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In an interview with free press, Luis Lara Grojic, President of the Guatemalan Banking Association (ABG) stressed that the economy could grow this year in the range of 3.6 to 3.8%, which is very positive, in the midst of the international context that the world is witnessing, in particular because of the chances of a recession.

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Aileen Morales

"Beer nerd. Food fanatic. Alcohol scholar. Tv practitioner. Writer. Troublemaker. Falls down a lot."

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