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Guatemala forecasts 5% export growth in 2024

Guatemala City, Apr 28 (Prensa Latina) The Bank of Guatemala (Banguat) today projects a 5% growth in exports for 2024, which represents a recovery from last year's 9.4 percent drop.

In a visit to Washington, United States, the president of this financial institution, Alvaro Gonzalez, said that for the following annual period they estimate a 5% hike, while in this period imports would be around 7.5% and in 2025, 7%.

The authority highlighted parameters reviewed by the Monetary Board this month, such as a better economic performance of this nation than the rest of the world and Latin America, with the lowest monetary rate in the region.

Likewise, a gross domestic product (GDP) around its potential, as well as inflation at levels within the range six months earlier, 12 and 24-month inflation target expectations, and a stable monetary exchange rate.

He also mentioned remittances growing, although at a less dynamic pace, international monetary reserves with an upward trend, and bank credit with double-digit growth, among others.

In the initial forecasts, Gonzalez also emphasized possible external shocks, associated with the international price of a barrel of oil, inflation in the United States, international trade, food products and geopolitical tensions.

Nevertheless, he said, the forecast is for GDP to grow with core values of 3.5% in 2024 and 3.6% in 2025, which would be above the potential record.

In relation to the performance within GDP, the executives highlighted six sectorial activities: financial and insurance that will close 2024 at 7.3% and 6.2 in 2025; accommodation and food services, 4.9 and 4.3; professional 3.4 and 3.5 percent.

Real estate 4.1 and 4.2; construction 1.9 and 2.4, while the rest would average 3.2 and 3.3 percent, respectively.

The recovery observed this year would persist for the following year, Banguat executive remarked, and warned that in case of adopting reforms in the economic structure and a greater attraction of foreign direct investment, the potential could jump from 3.5% to 5% per year. mh/oda/znc