Poverty in Guatemala

The Guatemala Times recently summarized 2010 poverty data from the country.

Poverty in Guatemala increased from 51% to 54.1% -55%, according to the latest data published by the Central American Business Intelligence, CABI. CABI informed that poverty, infant and maternal mortality have increased in Guatemala due to the global economic crisis between 2009 and 2010. This has severely affected local efforts to achieve the Millennium Development Goals (MDGs).

In their study, CABI reported that the fall in economic growth in Guatemala caused the poverty level to rise from 51 percent to 54.1 percent and in some cases to 55 percent. Among the causes that increased poverty, the agency cited the loss of formal jobs, reduction in real wages (inflation) and bankruptcy of small businesses.

The agency stressed that the annual cost to address maternal and child mortality in Guatemala is not high, it takes only 0.25 percent of gross domestic product (GDP). If the investment in health is reduced it will adversely affect progress recorded in the field. The decrease of remittances of 9.3% in 2009 (Bank of Guatemala) had a very negative impact in the fight against poverty in Guatemala, in addition, despite the boost from programs like Social Cohesion, which distributes 300 Quetzals, (approximately US $ 38.4 depending on the exchange rate) per family, poverty has risen since 2007.

While the decline in remittances was one of the causes for the recent increase in poverty figures, there is some grounds for optimism given that Guatemala recorded a 15.1% increase in January 2011 remittances compared to January 2010.

The Bank of Guatemala revealed yesterday that January 2011 showed revenues of $ 283.3 million. Although this amount is higher than January 2010, when revenues where at U.S. $ 246.1 million, it has not yet reached the levels of 2009, revenues of US $ 290.2 million, or U.S. $ 314.6 million of January 2008.

While not as strong as 2009, it is a step in the right direction. Unfortunately, it's nowhere near the MDG's 2015 goal of 31.4% and really only returns the country to its 2006 poverty level.