Guatemala: 2024 Article IV Consultation-Press Release; and Staff Report
IMF Staff Country Reports, August 5, 2024
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- Guatemala: 2024 Article IV Consultation-Press Release; and Staff Report
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Bibliographic details
- Published: August 5, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400287398.002
Macroeconomic performance and recent developments
- Economic growth moderated to an estimated 3.5 percent in 2023.
- Consumer price index inflation and inflationary pressures decelerated from a 9.9 percent peak year-on-year in February 2023 to 3.6 percent in June 2024, within the monetary policy target.
- The Guatemalan economy continues to show stability and soundness thanks to a legacy of prudent monetary and fiscal policies.
Outlook and risks
- The country's outlook remains favorable, with risks skewed to the downside.
- Hefty investment needs imply a sustained requirement for higher revenues and improved public spending effectiveness.
- Higher growth and increased absorption of capital flows into the country will require gradual strengthening of the monetary and exchange rate policy frameworks.
Policy recommendations and priorities
- Fiscal policy
- Boost revenue while bolstering the quantity and quality of spending to meet investment needs.
- Monetary and exchange rate frameworks
- Gradually strengthen monetary and exchange rate policy frameworks to manage higher growth and capital flow absorption.
- Financial sector
- Promote an inclusive and sound financial sector guided by prudential principles to support economic development efforts.
- Governance and integrity
- Maintain focus on Anti-money laundering and combating the financing of terrorism (AML/CFT) and related supervisory measures as part of broader financial stability and integrity objectives.
Content in this bundle
- 1gtmea2024001-print-pdf