FITA helps you find
service providers for:

Market Research


flag Guatemala Guatemala: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

Guatemala was highly touched by the global economic crisis which affected the country's exports and the money transfers from expatriates, the Guatemalan economy was very close to enter into recession in 2009, the growth was 0.5%.  The revival of foreign trade and the measures adopted by the government have allowed a growth increase of 2.4% in 2010.  The perspectives are gloomy due to the slowdown of the American growth.

After an economic crisis transformed into a humanitarian crisis due to meteorological problems, Guatemala requested help from the IMF and signed a stand-by treaty in April 2009.  The priority of the government is, on one side, to continue financing the reconstruction and recovery projects, and on the other side, to establish essential structural reforms.  In particular, a reform of the fiscal system which should allow to improve the collection of taxes and affront its actual deficit.  The country is struck by several difficulties, notably crime and corruption which represent hindrances to tourism and business. 

In the social plan, Guatemala faces a difficult situation: more than half of the population lives below the poverty line, the country has one of the highest rates of malnutrition in the world, and there is a strong inequality in income.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 37.68e41.18e46.7349.6153.10
GDP (Constant Prices, Annual % Change) 0.52.82.83.03.5
GDP per Capita (USD) 2,689e2,867e3,177e3,2943,442
General Government Gross Debt (in % of GDP) 22.924.224.225.025.7
Inflation Rate (%) 1.9e3.9e6.35.45.2
Current Account (billions USD) 0.01-0.83-1.55e-1.87-2.12
Current Account (in % of GDP) 0.0-2.0-3.3e-4.0-

Source: IMF - World Economic Outlook Database , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

The agricultural sector accounts for 10% of the GDP and employs more than one third of the active population.  The country produces and exports mainly coffee, sugar, bananas, cotton, rubber, cardamon and a variety of precious woods and exotic fruits. The country has a small mining industry and extracts copper, zinc, iron and nickel.
The industry sector accounts for approximately 30% of the GDP and employs 23% of the population. It stands mainly from textiles, paper industries, pharmaceutical products, as well as rubber transformation industries. It has to be noted that since Guatemala's entry into the Free Trade Area of the Americas (FTAA) created by the United States, the advantages in customs have brought an increment in investments and the establishment of American companies in the country.
The service sector represents the largest part of the GDP accounting for more than 60%. The tourism industry is very dynamic and continues to grow.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 33.2 22.8 43.7
Value Added (in % of GDP) 11.9 27.4 60.7
Value Added (Annual % Change) 3.0 3.0 1.6

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20062007200820092010
Guatemala Quetzal (GTQ) - Average Annual Exchange Rate For 1 USD 7.607.677.568.168.06

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Guatemala on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
61.9/100
Position:
Moderately free
World Rank:
75/179
Regional Rank:
14/26

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

Return to top

Foreign Trade in Figures

Foreign trade represents more than 50% of the Guatemalan GDP.  Guatemala is one of the five countries of the Central American Common Market (CACM) along with Costa Rica, El Salvador, Honduras and Nicaragua. The FTAA  (or ALCA) agreement was signed by Guatemala in 2004. This agreement is characterized by an advantageous customs union for the Central American countries, Mexico, the United States and Canada.
The main export products are coffee, sugar, oil, textile manufacturing, fruits, vegetables and cardamon. Guatemala's main export clients are: the United States, El Salvador, Honduras, Mexico and Costa Rica. The main import partners are: the United States, Mexico, China, El Salvador, Costa Rica and South Korea.  The country's trade balance is structurally in deficit, a trend that should continue.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 11,91513,57614,54711,53113,836
Exports of Goods (million USD) 6,0256,8987,7377,2148,466
Imports of Services (million USD) 1,7562,0172,1152,0582,198
Exports of Services (million USD) 1,4101,6191,7321,8182,216
Imports of Goods and Services (Annual % Change) 6.57.2-5.7-9.47.0
Exports of Goods and Services (Annual % Change) 4.89.4-0.2-6.22.7
Imports of Goods and Services (in % of GDP) 41.942.339.432.834.3
Exports of Goods and Services (in % of GDP) 24.925.624.723.122.8
Trade Balance (million USD) -4,8525,487-5,575-3,348-4,292
Trade Balance (Including Service) (million USD) -5,1125,797-5,851-3,507-4,446
Foreign Trade (in % of GDP) 66.867.964.156.057.2

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
United States 38.8%
El Salvador 11.7%
Honduras 8.3%
Mexico 5.3%
Nicaragua 4.2%
See More Countries 31.7%
Main Suppliers
(% of Imports)
2010
United States 37.1%
Mexico 11.2%
China 7.1%
El Salvador 4.9%
Panama 3.2%
See More Countries 36.6%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Cane or beet sugar and chemically pure sucrose, in...Cane or beet sugar and chemically pure sucrose, in solid form 8.6%
Coffee, whether or not roasted or decaffeinated;...Coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee in any proportion 8.4%
Women's or girls' blouses, shirts and...Women's or girls' blouses, shirts and shirt-blouses, knitted or crocheted (excl. t-shirts and vests) 6.1%
Precious metal ores and concentratesPrecious metal ores and concentrates 5.9%
Bananas, incl. plantains, fresh or driedBananas, incl. plantains, fresh or dried 4.6%
See More Products 66.4%
Main Imports
(% of Imports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 15.3%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 2.5%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 2.2%
Transmission apparatus for radio-telephony,...Transmission apparatus for radio-telephony, radio-telegraphy, radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras; still image video cameras and other video camera recorders; digital cameras 2.2%
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 1.8%
See More Products 76.0%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

Return to top

Sources of General Economic Information

Ministries
Ministry of Economy (Spanish only)
Ministry of Public Finance (Spanish only)
Chamber of Industry (Spanish only)
Chamber of Commerce (Spanish only)
Statistical Office
National Institute of Statistics (Spanish only)
The Secretariat of Central American Economic Intergration
Central Bank
Central Bank of Guatemala
Bank supervision (Spanish only)
Stock Exchange
Guatemala Stock Exchange (Spanish only)
Search Engines
Guatemalaweb
Guatemarket.com
Yahoo directory
Google.es
Economic Portals
Deguate (Spanish only)

Return to top

Political Outline

Executive Power
President is both the chief of State and head of government. He holds the executive powers which include implementing the law and running the day-to-day affairs. The Council of Ministers is appointed by the President. The president is elected by popular vote for a term of four years.
Legislative Power
The Guatemalan legislative power is unicameral. Parliament, known as the Congress of the Republic, has 158 members who are elected by popular vote for a term of four years. The country's constitution provides for the separation of executive, legislative, and judiciary powers. The president cannot dissolve the parliament however, he has the power to veto acts of parliament which in turn can be overridden by a legislative supermajority.
Main Political Parties
Guatemala has a multi-party system, with 2 or 3 strong parties. The main political parties are follows:
- UNE: (National Unity for Hope) - a left-wing, nationalist gathering of political parties. It is currently the majority party; and has 30% of the parliamentary seats. It is the actual president's party.

- GANA: (Grand National Alliance) - which currently has 23% of the parliamentary seats.
- PP: (Patriotic party - nationalist party), it has 19% of the parliamentary seats.
- Then the FRG (Guatemalan Republican Front) (9%), conservative, whose electorate base is found in the rural population and the PU ( Union Party), 5%.  There are a myriad of other parties which collectively account for the remaining 14% of the seats.

Current Political Leaders
President: Otto PEREZ Molina (since January 14th, 2012) - Patriot Party
Vice President: Rafael ESPADA (since January 14th, 2008)
Next Election Dates
Presidential: August 2011
Parliamentary:August 2011
 

Indicator of Freedom of the Press

World Rank:
77/178
Evolution:
29 places up compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Partly Free
Political Freedom:
4/7
Civil Liberties:
4/7

Map of freedom 2010
Source: Freedom House

 

Return to top

Any Comments About This Content? Report It to Us.

 

© Export Entreprises SA, All Rights Reserved.
Last Updates: January 2012