Capital City: Guatemala
	It is %T:%M %A in Guatemala

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Economic trends

Guatemala’s economy has been shattered by the civil war for many years. However, recovery has started in 2004 with a GDP growth rate of 3.2% which further improved to 3.5% in 2005, thanks mainly to public & private spending and transfer of money by expatriates. GDP growth has reached 4.9% and 4.8% in 2006 and 2007. 4.3% are predicted for 2008 by the IMF. Rise in international oil prices resulted into an increase in inflation which touched 9.1% in 2005 but is estimated to have cooled down to 6.9% in 2006. The inflow of foreign investments has been hampered by unstable political and social environment, combined with corruption and drugs problems. 60% of the country’s population lives below the poverty line.

Main branches of industry

Guatemala has mainly agricultural economy. Agriculture accounts for 23% of the GDP and 75% of the country's exports. The major commercial and export crops are sugar, banana, coffee and cocoa. However agriculture is prone to climatic risks such as cyclones. Forest exploitation is not much developed. There is some manufacturing activity in the country, primarily that of refined sugar, textiles and clothing, furniture, and chemicals. Industry contributes nearly 19% to the GDP. "Maquiladoras", which are textile or clothing factories established in free zones and having a privileged access to the American market, are developing. There are good deposits of zinc, lead and nickel in the country. Extensive jade deposits are found in the central part of Guatemala. The petroleum industry has developed, although it has been limited by political unrest and environmentalist opposition. The tourism industry is very dynamic; especially the Mayan town of Chichicastenango is a popular site for the tourists. Banking sector is weak. The services sector contributes nearly 60% to the GDP.

International trade

Guatemala is one of Central American Common Market (CACM)'s five countries, along with Costa Rica, Salvador, Honduras and Nicaragua. A free-trade agreement was signed on May 2004 between CACM's five countries and the USA. Guatemala's top three export partners are: the U.S.A., El Salvador and Honduras. The country mainly exports apparel & clothing accessories, coffee & tea, fruits & nuts, and mineral fuels & oils. The top three import partners are: the USA, Mexico and China. The goods mainly imported are mineral fuels & oils, vehicles, electric & mechanical equipment, machinery, and plastic articles.