Guatemala

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Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

Guatemala’s economy had been shattered by the civil war that lasted for many years. However, the situation started to recover in 2004 with a GDP growth rate of 3.2% which further improved to 3.5% in 2005, due mainly to public & private spending and transfer of money by expatriates. GDP growth reached 4.9% in 2006 then 5.7% in 2007. It is estimated at 4.3% for 2008. Currently, the Guatemalan State emphasizes on social policies in the areas of health and education. Guatemala is aware of the fact that criminality and corruption hinder tourism and business and has been putting in place important reforms since 2004.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	30.26	34.02	38.96	38.14	39.07e
GDP (constant prices, annual % change)	5.4	6.3	4.0	1.0e	1.8e
GDP per capita (USD)	2,325	2,550e	2,848	2,721	2,721
Inflation rate (%)	6.6	6.8	11.4e	4.8	5.7e
Current Account (billions USD)	-1.52	-1.77	-1.86e	-1.51e	-1.92e
Current Account (in % of GDP)	-5.0	-5.2	-4.8	-4.0e	-4.9

Source: IMF - World Economic Outlook Database ; ILO, Laborstat - Yearly Statistics

Note: (e) Estimated data

Main sectors of industry

The agriculture sector accounts for 22.7% of the GDP and employs more than 50% 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 13% of the GDP and is mainly in textile. Paper, pharmaceutical as well as rubber transformation industries account for more or less the entire industrial activities of the country. It has to be noted that since Guatemala's entry into the Free Trade Areas of the Americas (FTAA) put in place by the United States, the customs advantages have brought growth to American investment and company establishment in the country. For 2007, the sector's production increased by 5%.
The third sector accounts for the biggest part of the GDP: 64.3%. The tourism industry is very dynamic and continues to grow. A lot of effort have been made to fight criminality and give Guatemala an image of a safe country.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	-	-	-
Value added (in % of GDP)	10.7	27.9	61.4
Value added (annual % change)	3.9	4.8	6.6

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Guatemala Quetzal (GTQ) - Average annual exchange rate for 1 USD	7.95	7.63	7.60	7.67	7.56

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 59.4/100
Position:: mostly unfree
World Rank:: 87 out of 179
Regional Rank:: 18 out of 29

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

Guatemala is one of the 5 Central American Common Market (CACM) countries along with Costa Rica, El Salvador, Honduras and Nicaragua. The FTAA or the ALCA was signed by Guatemala in 2004. This agreement is characterized by an advantageous customs union for Central-American countries, Mexico, United States and Canada.
The main export products are coffeee, sugar, petrol, textile (fabrication), fruits and vegetables and cardamon. Guatemala's main export partners are: the United States (39.6%), El Salvador (13.3%), Honduras (8.1%), Mexico (5.9%), Nicaragua (4.4%) and Costa Rica (4.2%).
The main import partners are: the United States (32.6%), Mexico (9.3%), China (6.5%), El Salvador (5.6%) and South Korea (5.1%).

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	6,176	8,737	9,650	10,934	12,482
Exports of goods (millions USD)	3,060	5,105	5,459	6,082	7,012
Imports of services (millions USD)	1,126	1,344	1,450	1,785	2,029
Exports of services (millions USD)	1,059	1,100	1,308	1,519	1,709
Imports of goods and services (annual % change)	0.5	5.7	-0.6	6.5	7.0
Exports of goods and services (annual % change)	-0.5	8.2	-2.1	4.8	10.8
Imports of goods and services (in % of GDP)	40.2	42.1	41.0	41.9	42.4
Exports of goods and services (in % of GDP)	25.8	27.0	25.1	25.0	25.6
Trade Balance (millions USD)	-3,116	-3,632	-4,191	-4,852	-5,470
Trade Balance (including service) (millions USD)	-3,183	-3,876	-4,332	-5,118	-5,790
Foreign trade (in % of GDP)	66.0	69.1	66.0	66.9	68.1

Source: World Bank

Main partner countries

Main customers (% of exports)	2008
United States	39.4%
El Salvador	12.6%
Honduras	9.5%
Mexico	6.6%
Nicaragua	4.2%
Costa Rica	4.1%
Panama	2.1%
Dominican Republic	1.5%
Japan	1.5%
Netherlands	1.4%
Canada	1.4%
Chile	1.3%
Saudi Arabia	1.0%
Germany	1.0%
Italy	0.9%
Br. Virgin Isds	0.8%
Belize	0.7%
Peru	0.7%
Belgium	0.5%
Colombia	0.5%
See more countries	27.7%

Main suppliers (% of imports)	2008
United States	36.7%
Mexico	9.7%
China	5.8%
El Salvador	4.7%
Neth. Antilles	3.2%
Costa Rica	2.9%
Panama	2.8%
Japan	2.5%
South Korea	2.5%
Honduras	2.4%
Colombia	2.0%
Brazil	1.9%
Chile	1.8%
Germany	1.5%
Peru	1.3%
Spain	1.3%
Canada	1.2%
Hong Kong	1.1%
Argentina	1.0%
India	0.9%
See more countries	39.9%

Source: Comtrade

Main products

Main exports (% of exports)	2008
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	12.1%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	11.1%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	7.0%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	6.3%
Sugars and sugar confectionerySugars and sugar confectionery	5.8%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	3.5%
Ores, slag and ashOres, slag and ash	3.4%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	3.2%
Rubber and articles thereofRubber and articles thereof	3.0%
Plastics and articles thereofPlastics and articles thereof	2.7%
Beverages, spirits and vinegarBeverages, spirits and vinegar	2.6%
Iron and steelIron and steel	2.2%
Pharmaceutical productsPharmaceutical products	2.2%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	2.1%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	2.1%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	1.8%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	1.7%
Miscellaneous chemical productsMiscellaneous chemical products	1.7%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.6%
Articles of iron or steelArticles of iron or steel	1.6%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	1.5%
Miscellaneous edible preparationsMiscellaneous edible preparations	1.4%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	1.1%
Organic chemicalsOrganic chemicals	1.0%
Knitted or crocheted fabricsKnitted or crocheted fabrics	1.0%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	1.0%
CottonCotton	0.9%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.8%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.8%
Glass and glasswareGlass and glassware	0.8%
Aluminium and articles thereofAluminium and articles thereof	0.8%
Live trees and other plants; bulbs, roots and the...Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage	0.7%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.7%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.6%
Ceramic productsCeramic products	0.6%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	0.6%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.5%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.5%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.5%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.4%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.4%
Man-made filamentsMan-made filaments	0.4%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.3%
FertilizersFertilizers	0.3%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.3%
Man-made staple fibresMan-made staple fibres	0.3%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.3%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.3%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.3%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.3%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	0.3%
CerealsCereals	0.3%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.2%
Copper and articles thereofCopper and articles thereof	0.2%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.2%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.2%
Meat and edible meat offalMeat and edible meat offal	0.2%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.1%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.1%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.1%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.1%
See more products	57.7%

Main imports (% of imports)	2008
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	19.6%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	7.7%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	7.4%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	6.7%
Plastics and articles thereofPlastics and articles thereof	5.5%
Iron and steelIron and steel	4.5%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	3.6%
CerealsCereals	3.0%
CottonCotton	2.8%
Pharmaceutical productsPharmaceutical products	2.8%
Organic chemicalsOrganic chemicals	2.0%
FertilizersFertilizers	1.8%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	1.7%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	1.7%
Miscellaneous chemical productsMiscellaneous chemical products	1.5%
Knitted or crocheted fabricsKnitted or crocheted fabrics	1.5%
Articles of iron or steelArticles of iron or steel	1.4%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	1.2%
Man-made staple fibresMan-made staple fibres	1.2%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	1.2%
Rubber and articles thereofRubber and articles thereof	1.1%
Miscellaneous edible preparationsMiscellaneous edible preparations	1.0%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	1.0%
Man-made filamentsMan-made filaments	1.0%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.9%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.9%
Aluminium and articles thereofAluminium and articles thereof	0.9%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	0.8%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.7%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.7%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.6%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.6%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.6%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.6%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.5%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.5%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.5%
Meat and edible meat offalMeat and edible meat offal	0.5%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.5%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.5%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.4%
Glass and glasswareGlass and glassware	0.4%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.4%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.4%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.4%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.4%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.3%
Ceramic productsCeramic products	0.3%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.3%
Sugars and sugar confectionerySugars and sugar confectionery	0.3%
Special woven fabrics; tufted textile fabrics;...Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery	0.3%
Zinc and articles thereofZinc and articles thereof	0.3%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.2%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.2%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.2%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.2%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.2%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.2%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.2%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.2%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.1%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.1%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.1%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.1%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.1%
See more products	53.1%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

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)

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: Alvaro COLOM Caballeros (since January 14th, 2008) - UNE
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:: 101/173
Evolution:: 3 places up compared to 2007

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

Indicator of political freedom

Ranking:: Partly Free
Political freedom:: 3/7
Civil liberties:: 4/7

Map of freedom 2007
Source: Freedom House

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