LatinNews Daily - 7 January 2025

*Guatemala’s Finance Minister Jonathan Menkos has said that a minimum wage rise announced last month will have a “positive effect on the economy”. On 22 December the government led by left-of-centre reformist President Bernardo Arévalo announced a 10% minimum wage rise. This brings the minimum monthly wage rise for non-agricultural activities to Q3,723.05 (US$483), up from Q3,384, while the minimum monthly wage for the agricultural sector increased to Q3,593.55 from Q3,266. A report by state news agency Agencia Guatemalteca de Noticias (AGN) cites Menkos as saying that the increase could boost economic growth by up to 0.15% in real terms. The AGN report also cites Arévalo as saying that the decision was in line with a “technical analysis which is based on national and international studies” while the 10% increase was the “highest of the last two decades”. The same report notes that just over 70% of the Guatemalan population works in the informal sector, without access to labour rights or social security.