Holy Week active several productive sectors such as tourism, accommodation, restaurants, transport, and all those that have a primary connection. On the other hand, There is a temporary job and a greater amount of consumption especially of food and drinks.
The Bank of Guatemala (Banguat) reported that since April 11 an additional injection of cash or paper money is made to the economy by Q1 thousand 800 million and the money in circulation will reach the Q97 billion known as monetary mass.
Although it is known how much the monetary injection will be for a greater demand for cash for the displacement of people and the holiday period for public and private sector workers There is no figure that indicates which is the real measurement, that is, how much is generated during the highest week.
Neutral incidence
As in the end of the year parties, During Holy Week there is greater economic and productive activity, that is, there is greater demand and internal consumption.
The Major Week is propitious for dozens of Guatemalans and foreigners to mobilize towards the different tourist destinations, while allowing others to return to their places of origin to share with their family and friends, so that all of the above has economic implications, by adding demand and generating seasonal employment in some economic activities.
On the other hand, it also records a decrease in the number of days worked, which naturally has a negative incidence in economic activity, So the total effect is usually neutral, The Bank of Guatemala (Banguat) explained when making the consultation.
¿Why is it not measured?
“The measurement of economic activity during Holy Week is not captured in isolation in the central framework of national accounts, since these focus on the total production of goods and services,” said Álvaro González Ricci, president of the Central Banking, when consulting whether there is a precise measurement of what can be generated in these days.
Although he clarified that accommodation and food service activities are the ones that register the greatest dynamics during Holy Week, in congruence with the internal mobilizations of travelers, both national and foreign.
This part is based on the period of the quarterly GDP.
In addition, that a part of the production and importation related to the Holy Week season is carried out in advance (weeks or even months before), which increases the inventory of goods such as costume items, food, drinks, among others.
Demand adds
During Holy Week people are inclined to make several expenses, that can move the needle of internal consumption, It was reported.
“While quarterly national accounts are compiled by the production approach and for the destination of spending, isolating the effect on the demand attributable exclusively to Holy Week to evaluate its impact, it is a procedure of which the Bank of Guatemala does not have; however, according to the characteristics of the demand generated in that period, The component that is most energized is private consumption in the characteristic goods and services of the time; However, as indicated, there are also other goods and services whose demand decreases, so the total effect is usually neutral, ”said the central bank official.
Microeconomics
Although the position is macro, microeconomics can also benefit from all that dynamic of spending and consumption during Holy Week. That is, a small merchant or food business, costumes associated with the season, all the products of a street vendor who accompanies the processions offering its various products, a meal seller can record greater sales, citing as an example.
The Banguat explained that macroeconomic demand refers to the sum of goods and services that economic agents (households, companies and government) acquire in an economy during a certain period. In the Holy Week period, Macroeconomic demand is mainly associated with consumption lodging services and restaurants, which usually records important increases, greater than the average growth of the rest of the months, it was mentioned.
“At the microeconomic level, demand is associated with consumer behavior as an individual economic agent, restricted by a personal budget, who, before an event like Holy Week, could show a greater propensity for the consumption of goods and services related to leisure, recreation, religion and culture activities, typical of the time,” said González Ricci.
By territory
The official reiterated that the current measurement of economic activity in the country is based on the 2008 National Accounts System (SCN2008), at a national scale, so, from this perspective, it is not possible to promptly identify regions or territories that can be seen more/less benefited during Holy Week.
However, it can be assumed that those territories with greater tourist demand are mainly benefited.