Guatemala Economy Profile 2009

Economy - overview

Guatemala is the most populous of the Central American countries with a GDP per capita roughly one-half that of Argentina, Brazil, and Chile. The agricultural sector accounts for about one-tenth of GDP, two-fifths of exports, and half of the labor force. Coffee, sugar, and bananas are the main products, with sugar exports benefiting from increased global demand for ethanol. The 1996 signing of peace accords, which ended 36 years of civil war, removed a major obstacle to foreign investment, and Guatemala since then has pursued important reforms and macroeconomic stabilization. The Central American Free Trade Agreement (CAFTA) entered into force in July 2006 and has since spurred increased investment in the export sector, but concerns over security, the lack of skilled workers and poor infrastructure continued to hamper foreign participation. The distribution of income remains highly unequal with more than half of the population below the national poverty line. Other ongoing challenges include increasing government revenues, negotiating further assistance from international donors, curtailing drug trafficking and rampant crime, and narrowing the trade deficit. Given Guatemala's large expatriate community in the United States, it is the top remittance recipient in Central America, with inflows serving as a primary source of foreign income equivalent to nearly two-thirds of exports. Economic growth will slow in 2009 as export demand from US and other Central American markets drop and foreign investment slows amid the global slowdown.

GDP (purchasing power parity)

$68.58 billion (2008 est.)
$65.95 billion (2007 est.)
$62.04 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$38.96 billion (2008 est.)

GDP - real growth rate

4% (2008 est.)
6.3% (2007 est.)
5.4% (2006 est.)

GDP - per capita (PPP)

$5,300 (2008 est.)
$5,200 (2007 est.)
$5,000 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 13.1%
industry: 25%
services: 61.9% (2008 est.)

Population below poverty line

56.2% (2004 est.)

Labor force

4.056 million (2008 est.)

Labor force - by occupation

agriculture: 50%
industry: 15%
services: 35% (1999 est.)

Unemployment rate

3.2% (2005 est.)

Household income or consumption by percentage share

lowest 10%: 1.3%
highest 10%: 42.4% (2006)

Distribution of family income - Gini index

55.1 (2007)
55.8 (1998)

Investment (gross fixed)

18.6% of GDP (2008 est.)

Budget

revenues: $4.693 billion
expenditures: $5.338 billion (2008 est.)

Public debt

23.6% of GDP (2008 est.)
32% of GDP (2004 est.)

Inflation rate (consumer prices)

11.4% (2008 est.)
6.8% (2007 est.)

Central bank discount rate

NA%

Commercial bank prime lending rate

NA% (31 December 2008)
12.84% (31 December 2007)

Stock of money

$6.106 billion (31 December 2008)
$6.227 billion (31 December 2007)

Stock of quasi money

$9.7 billion (31 December 2008)
$8.928 billion (31 December 2007)

Stock of domestic credit

$14.82 billion (31 December 2008)
$13.96 billion (31 December 2007)

Industries

sugar, textiles and clothing, furniture, chemicals, petroleum, metals, rubber, tourism

Industrial production growth rate

1.4% (2008 est.)

Electricity - production

7.643 billion kWh (2006 est.)

Electricity - production by source

fossil fuel: 51.9%
hydro: 35.2%
nuclear: 0%
other: 12.9% (2001)

Electricity - consumption

6.617 billion kWh (2006 est.)

Electricity - exports

131.9 million kWh (2007 est.)

Electricity - imports

8.11 million kWh (2007 est.)

Oil - production

15,820 bbl/day (2007 est.)

Oil - consumption

74,230 bbl/day (2006 est.)

Oil - imports

72,960 bbl/day (2006 est.)

Oil - exports

15,560 bbl/day (2006 est.)

Oil - proved reserves

83.07 million bbl (1 January 2008 est.)

Natural gas - production

0 cu m (2007 est.)

Natural gas - consumption

0 cu m (2007 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

2.96 billion cu m (1 January 2006 est.)

Current Account Balance

-$2.119 billion (2008 est.)
-$1.754 billion (2007 est.)

Agriculture - products

sugarcane, corn, bananas, coffee, beans, cardamom; cattle, sheep, pigs, chickens

Exports

$7.862 billion (2008 est.)
$7.012 billion (2007 est.)

Exports - commodities

coffee, sugar, petroleum, apparel, bananas, fruits and vegetables, cardamom

Exports - partners

US 41.7%, El Salvador 9.5%, Honduras 8.5%, Mexico 6.4%, Costa Rica 4.4% (2008)

Imports

$13.38 billion (2008 est.)
$12.48 billion (2007 est.)

Imports - commodities

fuels, machinery and transport equipment, construction materials, grain, fertilizers, electricity

Imports - partners

US 35.7%, Mexico 10%, China 7.3%, El Salvador 4.7%, Costa Rica 4.1% (2008)

Reserves of foreign exchange and gold

$4.471 billion (31 December 2008 est.)
$4.139 billion (31 December 2007 est.)

Debt - external

$6.498 billion (31 December 2008 est.)
$5.908 billion (31 December 2007 est.)

Market value of publicly traded shares

$NA

Economic aid - recipient

$253.6 million (2005 est.)

Currency (code)

GTQ; USD

Currency (code)

quetzal (GTQ), US dollar (USD), others allowed

Exchange rates

quetzales (GTQ) per US dollar - 7.5895 (2008 est.), 7.6833 (2007), 7.6026 (2006), 7.6339 (2005), 7.9465 (2004)

Fiscal year

calendar year