Guatemala: 2024 Article IV Consultation-Press Release; and Staff Report

August 5, 2024

Preview Citation

Format: Chicago

Guatemala: 2024 Article IV Consultation-Press Release; and Staff Report, (USA: International Monetary Fund, 2024) accessed September 14, 2024

Summary

Guatemala's economy continues to grow at its potential given existing constraints, with inflation within the monetary policy’s target. While political risks remain latent, Guatemala maintains its long-standing track record of macroeconomic stability and prudent policies anchored in a low-growth equilibrium. The country has accumulated large buffers, with large remittance inflows and low-deficit policies. Meanwhile, the country faces important challenges, but the fragmented political landscape in Congress, following the 2023 general election, gives limited space to pass a reform agenda to address its long-standing vulnerabilities—i.e., chronic infrastructure, human capital, and social gaps; low tax revenue and gaps in public spending efficiency and transparency; weak governance, corruption, and weak institutions. The window of opportunity to advance is narrowing. In April, S&P upgraded Guatemala's outlook to positive from stable, while maintaining its BB rating.

Subject: Anti-money laundering and combating the financing of terrorism (AML/CFT), Central bank policy rate, Crime, Financial services, Public debt, Revenue administration, Tax collection

Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), Caribbean, Central America, Central bank policy rate, Financial institutions buy, FX intervention, FX participation rule band, Global, Reference exchange rate, Reform agenda, Tax collection

Publication Details

Pages:

83
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2024/266
Stock No:

1GTMEA2024001
ISBN:

9798400287398
ISSN:

1934-7685

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