Guatemala reports 3.1% rise in GDP

2011-10-04

The first three months of 2011 saw Guatemala’s service-industry output increase by 3.1%, with household expenditure driving up the Gross Domestic Product (GDP) drastically. Bank of Guatemala, the central bank of Guatemala, said in a report dated July 7, 2011 that mining and financial services displayed the greatest vitality among all sectors. Compared to the slumping construction and power supply sectors, mining output gained 18.1% in the first quarter. The output of financial brokerage surged by 10.2% due to the loans it provided to the private sector. Although the construction sector shrank by 0.8%, the economic research department at Bank of Guatemala predicts a recovery in the sector over the next few months, citing the government approval for increased area of construction (in square meters) and cement sales. Thanks to the bolstered consumption at restaurants and bars, as well as the growing demand for advertising, the private service sector enjoyed a 4.3% expansion. Household expenditure contributes to 84.4% of GDP. Guatemala’s GDP rose by 3.2% in the first quarter, below the 4.1% level achieved a quarter ago.