Economics
Guatemala’s Political Crisis Could Hurt Growth, Central Bank Says
- Loans to private sector slowing as investors pull back
- Eurasia Group says crisis could cause President Morales ouster
Jimmy Morales
Photographer: Chris Goodney/BloombergThis article is for subscribers only.
Guatemala’s second major political crisis in two years could hurt economic growth if it drags on, interim Central Bank President Sergio Recinos said.
The crisis, which deepened this week after a court overruled President Jimmy Morales’s attempt to expel UN-backed anti-corruption chief Ivan Velasquez, was a factor in this week’s Central Bank decision not to raise raise interest rates, and has dampened investor confidence, Recinos said.