## Guatemala: Staff Report for the 2005 Article IV Consultation

_IMF Staff Country Reports, October 6, 2005_

## Source details

**Canonical URL:** [Guatemala: Staff Report for the 2005 Article IV Consultation](https://www.imf.org/en/publications/cr/issues/2016/12/31/guatemala-staff-report-for-the-2005-article-iv-consultation-18613)

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## Bibliographic details
- Published: October 6, 2005
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451816655.002

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### Overview
- Following three years of sluggish economic growth, activity in Guatemala improved somewhat in 2004.
- Real GDP rose by 2¾ percent in 2004.
- Consumer price inflation drifted upward to more than 9 percent in 2004.
- Monetary policy is being geared to reducing inflation to the 4–6 percent range.
- The exchange system is flexible; however, the central bank intervened in the foreign exchange in 2004 to contain the appreciation of the quetzal against the U.S. dollar.
- In January 2005, a rules-based mechanism for interventions was introduced.

### Key macroeconomic findings
- Growth: real GDP rose by 2¾ percent in 2004.
- Inflation: consumer price inflation rose to more than 9 percent in 2004.
- Inflation targeting stance: monetary policy aims for inflation of 4–6 percent.
- Exchange regime: described as flexible, with central bank interventions in 2004 to limit quetzal appreciation; a rules-based intervention mechanism began in January 2005.

### Policy implications and priorities identified
- Use monetary policy to reduce inflation toward the 4–6 percent range.
- Maintain a flexible exchange system while employing a rules-based intervention mechanism introduced in January 2005 to address excessive exchange rate appreciation pressures.

*Source: Guatemala: Staff Report for the 2005 Article IV Consultation, October 6, 2005.*

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## Content in this bundle

- **_cr05362 — Executive Summary and Selected Staff Report Extracts**
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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/guatemala-staff-report-for-the-2005-article-iv-consultation-18613_