GUATEMALA: LIDER’S Baldizon Favored in September Race

CENTRAL AMERICA - Report 30 Mar 2015 by Francisco de Paula Gutiérrez and Felix Delgado
Executive Summary We expect economic calm in Guatemala this year, with a growth forecast of about 4%, and inflation low, at about 3.5%. External accounts will benefit from oil price decline and the increase in rates of private remittances, and the current account deficit will decline.Public finances will come under campaign spending pressure, with current expenditures increasing faster, and the central government’s deficit is expected to inch up to 2% of nominal GDP.Monetary policy will continue to focus on keeping inflation within the Central Bank’s 3% to 5% target, and the currency will e...

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