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

International Monetary Fund

No 2024/266, IMF Staff Country Reports from International Monetary Fund

Abstract: The 2024 Article IV Consultation discusses that Guatemala has continued to maintain its solid track record of macroeconomic policies, with economic growth moderating to an estimated 3.5 percent in 2023 and consumer price index inflation and inflationary pressures decelerating 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. The country's outlook remains favorable, with risks skewed to the downside. With hefty investment needs, Guatemala will need to boost revenue while bolstering the quantity and quality of spending. Higher growth and absorption of capital flows into the country requires gradual strengthening of the monetary and exchange rate policy frameworks. An inclusive and sound financial sector guided by prudential principles should further support Guatemala’s economic development efforts.

Keywords: FX participation rule band; FX intervention; reference exchange rate; financial institutions buy; reform agenda; Anti-money laundering and combating the financing of terrorism (AML/CFT); Central bank policy rate; Tax collection; Global; Central America; Caribbean (search for similar items in EconPapers)
Pages: 83
Date: 2024-08-05
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