Of the extraordinary income in foreign currency from family remittances that Guatemala received, about Q20 billion were allocated to savings in bank depositswhich represented about US$2.5 billion, according to estimates released by the central bank in its recent evaluation report on the 2025 economy.
The data indicate that Guatemalan migrants managed to send about Q39 billion, which is equivalent to around US$5 billion, of which about Q20 billion were captured as savings deposits and the rest was allocated to the consumption of goods and services in the economy.
This behavior would not be repeated this year, as explained by the authorities of the Bank of Guatemala (Banguat) after analyzing the variable.
In 2025, records indicate that Guatemala received US$25,530 million in family remittanceswhich meant an increase of 18.7%, equivalent to about US$4.2 million more.
Extraordinary remittances strengthen deposits
Álvaro González Ricci, president of Banguat, and Jonhy Gramajo Marroquín, economic manager, explained that private consumption in the economy, detected last year, was driven by family remittances, one of the flows that contributed to the growth of productive activity.
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Official projections indicate that around 60% on average is destined for consumption, out of a “normal consignment.”
Last year there was an “extraordinary remittance,” whose fundamental purpose was not expense, but rather a “precautionary” reason, they explained.
The authorities commented that this money was not used for consumption in homes, so it remained as savings in the financial system.
Central banking projections indicate that around 60% of remittances remained in the “normal” structure, with a growth of 9%, but by growing almost 19%, That 10% difference, equivalent to about US$2.5 billion (Q20 billion), was not allocated to consumption, but to savings.
That means, in simple terms, that bank deposits grew driven by Guatemalan migrants.
Remittance savings strengthen bank liquidity
Regarding what was stated by the monetary authorities, Mario Arturo García, an expert on remittances and migration issues, indicates that, by reaching a flow of remittances of US$25.5 billion last year and comparing it with the results of the Migration Survey of the International Organization for Migration (IOM), which indicates that 7% of remittances are destined for savings, a relevant estimate is obtained.
This means, according to the specialist, that between Q13,500 million annually end up in deposit accounts of the financial system, as “a direct effort of Guatemalans working abroad.”
He added that, when analyzing the impact within the financial system, recent figures from the Superintendency of Banks (SIB) show that the total volume of deposits in the national financial system reaches approximately Q460 billion. So, considering that in recent years these deposits have grown on average around 11% annually, this represents an increase close to Q49.5 billion per year.
“Under this context, it can be estimated that approximately 27% of the annual growth of deposits in the financial system comes, directly or indirectly, from family remittances. This shows the central role that migration and the sending of remittances have in the expansion of savings and liquidity of the Guatemalan financial system,” García noted.
Remittance savings depend on account control
When asked whether these extraordinary income from remittances are in circulation in the economy or are kept as savings in the event of any contingency, García assured that it is likely that a significant part of these Q13,500 million remain in the banking system when the migrant maintains direct control of the account, that is, when it is in their name and they can manage it through electronic banking.
Last year there was an “extraordinary remittance”, whose fundamental purpose was not expense, but rather a “precautionary” reason.
On the other hand, he stated that when resources remain under the control of family members in the country, there is a greater probability that they will be used for cover basic needs or consumption expenses, which reduces its permanence as savings.
Therefore, he recommended that making it easier for migrants to open and manage bank accounts under their own control is key to preserving a greater proportion of savings from remittances within the financial system.
Costs and taxes push remittances to banks
Given that the implementation of a tax on sending remittances in the US came into force this year, an increase in bank account volumes would be expected.
García believes that factors such as the tax on remittances, as well as shipping costs, are encouraging the use of direct deposit channels to accounts, instead of cash payments over the counter.
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He added that currently it is estimated that around 20% of remittances are channeled into bank accounts. However, he anticipated that this proportion is likely to increase to around 25% in the short term. So, when considering the total volume of remittances projected by the central bank, this could mean close to Q50 billion deposited directly into millions of accounts in the national financial system.
He reiterated that, in this scenario, the role of institutions that promote financial education will be key to ensuring that a greater proportion of these resources remain as savings within the banking system. In any case, the trend indicates that the direct deposit channel will continue to gain share steadily in the coming years.