IMF Staff Country Reports

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

Publication Date:

August 5, 2024

Electronic Access:

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Summary:

Guatemala's economy continues to grow at its potential given existing constraints, with inflation within the monetary policy’s target. While political risks remain latent, Guatemala maintains its long-standing track record of macroeconomic stability and prudent policies anchored in a low-growth equilibrium. The country has accumulated large buffers, with large remittance inflows and low-deficit policies. Meanwhile, the country faces important challenges, but the fragmented political landscape in Congress, following the 2023 general election, gives limited space to pass a reform agenda to address its long-standing vulnerabilities—i.e., chronic infrastructure, human capital, and social gaps; low tax revenue and gaps in public spending efficiency and transparency; weak governance, corruption, and weak institutions. The window of opportunity to advance is narrowing. In April, S&P upgraded Guatemala's outlook to positive from stable, while maintaining its BB rating.

Series:

Country Report No. 2024/266

Subject:

Anti-money laundering and combating the financing of terrorism (AML/CFT) Crime Currencies Economic and financial statistics External debt Government finance statistics Infrastructure International trade Money National accounts Public debt Revenue administration Trade balance

Frequency:

regular