중남미

This 2018 Article IV Consultation highlights sound monetary policy management in Guatemala, which has helped keep inflation expectations firmly anchored. Fiscal deficits have remained at decade lows on the back of low debt tolerance and inadequate budgetary execution. Terms-of-trade gains and an upsurge in remittance inflows moved the current account into a sizable surplus. The financial system is sound and well regulated, and vulnerabilities seem manageable. Growth nevertheless falls shorts of what it necessary to achieve Guatemala’s goal of meaningfully lifting its citizens’ standard of living. Near-term growth prospects remain subdued, at 3.2 percent in 2018 and 3.6 percent in 2019.