Guatemala: Economic and Political Outline
Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline
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 | 2009 | 2010 | 2011 | 2012 (e) | 2013 (e) |
| GDP (billions USD) | 37.68e | 41.18e | 46.73 | 49.61 | 53.10 |
| GDP (Constant Prices, Annual % Change) | 0.5 | 2.8 | 2.8 | 3.0 | 3.5 |
| GDP per Capita (USD) | 2,689e | 2,867e | 3,177e | 3,294 | 3,442 |
| General Government Gross Debt (in % of GDP) | 22.9 | 24.2 | 24.2 | 25.0 | 25.7 |
| Inflation Rate (%) | 1.9e | 3.9e | 6.3 | 5.4 | 5.2 |
| 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
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 | 2006 | 2007 | 2008 | 2009 | 2010 |
| Guatemala Quetzal (GTQ) - Average Annual Exchange Rate For 1 USD | 7.60 | 7.67 | 7.56 | 8.16 | 8.06 |
Source: World Bank - Last Available Data.
Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation
See the Country Risk Analysis Provided By Ducroire.
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 | 2006 | 2007 | 2008 | 2009 | 2010 |
| Imports of Goods (million USD) | 11,915 | 13,576 | 14,547 | 11,531 | 13,836 |
| Exports of Goods (million USD) | 6,025 | 6,898 | 7,737 | 7,214 | 8,466 |
| Imports of Services (million USD) | 1,756 | 2,017 | 2,115 | 2,058 | 2,198 |
| Exports of Services (million USD) | 1,410 | 1,619 | 1,732 | 1,818 | 2,216 |
| Imports of Goods and Services (Annual % Change) | 6.5 | 7.2 | -5.7 | -9.4 | 7.0 |
| Exports of Goods and Services (Annual % Change) | 4.8 | 9.4 | -0.2 | -6.2 | 2.7 |
| Imports of Goods and Services (in % of GDP) | 41.9 | 42.3 | 39.4 | 32.8 | 34.3 |
| Exports of Goods and Services (in % of GDP) | 24.9 | 25.6 | 24.7 | 23.1 | 22.8 |
| Trade Balance (million USD) | -4,852 | 5,487 | -5,575 | -3,348 | -4,292 |
| Trade Balance (Including Service) (million USD) | -5,112 | 5,797 | -5,851 | -3,507 | -4,446 |
| Foreign Trade (in % of GDP) | 66.8 | 67.9 | 64.1 | 56.0 | 57.2 |
Source: WTO - World Trade Organization ; World Bank , Last Available Data
| 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
Source: Comtrade, Last Available Data
- 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.
Source: Worldwide Press Freedom Index 2010, Reporters Without Borders
Map of freedom 2010
Source: Freedom House
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Last Updates: January 2012