Economic overview Guatemala, in 36 editions.

The economy is based on agriculture, which accounts for 25% 26% of GDP, employs about 60% of the labor force, and supplies two-thirds of exports. Industry Manufacturing accounts for about 20% 15% of GDP and 15% 12% of the labor force. The economy has reentered a slow-growth phase, but is hampered by political uncertainty. In 1988 1990 the economy grew by 3.7%, 3.5%, the third fourth consecutive year of mild growth. Government economic reforms introduced since 1986 have stabilized exchange rates and have helped to stem inflationary pressures. The inflation rate has dropped from 36.9% policies, however, were erratic in 1986 1990--an election year--and inflation shot up to 15% 60%, the highest level in 1989. modern times.

The economy is based on family and corporate agriculture, which accounts for
26% of GDP, employs about 60% of the labor force, and supplies two-thirds of
exports. Manufacturing Manufacturing, predominantly in private hands, accounts for about 15%
18% of GDP and 12% of the labor force. In both 1990 and 1991, the economy
grew by 3.5%, 3%, the fourth and fifth consecutive year years of mild growth. Government economic policies, however, were erratic Inflation
at 40% in 1990--an election year--and inflation shot up to 60%, 1990-91 was more than double the highest level in modern times. 1987-89 level.

The economy is based on family and corporate agriculture, which accounts for
26% of GDP, employs about 60% of the labor force, and supplies two-thirds of
exports. Manufacturing, predominantly in private hands, accounts for about
18% of GDP and 12% of the labor force. In both 1990 and 1991, the economy
grew by 3%, the fourth and fifth consecutive years of mild growth. Inflation In 1992
at 40% in 1990-91 was more than double the 1987-89 level. growth picked up to 4% as government policies favoring competition and
foreign trade and investment took stronger hold.

The economy is based on family and corporate agriculture, which
accounts for
26% of GDP, employs about 60% of the labor force, and
supplies two-thirds of
exports. Manufacturing, predominantly in
private hands, accounts for about
18% of GDP and 12% of the labor
force. In both 1990 and 1991, the economy
grew by 3%, the fourth and
fifth consecutive years of mild growth. In 1992
growth picked up to 4%
almost 5% as government policies favoring competition and
foreign
trade and investment took stronger hold. In 1993, despite political
unrest, this momentum continued, foreign investment held up, and
growth was estimated at 4%.

The economy is based on family and corporate agriculture, which
which accounts for 26% 25% of GDP, employs about 60% of the labor force, and
and supplies two-thirds of exports. Manufacturing, predominantly in
private hands, accounts for about 18% 15% of GDP and 12% of the labor
force. In both 1990 and 1991, the economy grew by 3%, the fourth and
fifth consecutive years of mild growth. In 1992 growth picked up to
almost 5% as government policies favoring competition and foreign
trade and investment took stronger hold. In 1993, 1993-94, despite political
unrest, this momentum continued, foreign investment held up, and
annual growth was estimated at 4%.

The economy is based on family and corporate agriculture,
agriculture, which accounts for 25% of GDP, employs about 60% of the
labor force,
and supplies two-thirds of exports. Manufacturing,
predominantly in
private hands, accounts for about 15% 20% of GDP and
12% of the labor
force. In both 1990 and 1991, the economy grew by
3%, the fourth and
fifth consecutive years of mild growth. In 1992
growth picked up to
almost 5% as government policies favoring
competition and foreign
trade and investment took stronger hold. In
1993-94, despite political
unrest, this momentum continued, foreign
investment held up, and
annual growth was averaged 4%. Strong
international prices for Guatemala's traditional commodity exports
featured 4.9% growth in 1995. Given the markedly uneven distribution
of land and income, the government faces major obstacles in its
program of economic modernization and the reduction of poverty.

The economy is based on family and corporate
agriculture, which accounts for 25% of GDP, employs about 60% of the
labor force, and supplies two-thirds of exports. Manufacturing, Manufacturing and
construction, predominantly in private hands, accounts account for about 20% of
GDP and
12% 18% of the labor force. In both 1990 and 1991, the economy
grew by
3%, the fourth and fifth consecutive years of mild growth. In 1992
1992 growth picked up to almost 5% as government policies favoring
competition and foreign trade and investment took stronger hold. In
1993-94, despite political unrest, this momentum continued, foreign
investment held up, and annual growth averaged 4%. Strong
international prices for Guatemala's traditional commodity exports
featured 4.9% growth in 1995. 1995; growth receded to 3% in 1996. Given the
markedly uneven distribution
of land and income, the government faces
major obstacles in its
program of economic modernization and the
reduction of poverty.

The agricultural sector accounts for one-fourth of
of GDP and two-thirds of exports and employs more than half of the labor
labor force. Coffee, sugar, and bananas are the main products. Manufacturing
Manufacturing and construction account for one-fifth of GDP. Since
assuming office
in January 1996, President ARZU has worked to
implement a program of
economic liberalization and political
modernization. The signing of
the Peace Accords peace accords in December 1996,
which ended 36 years of civil war,
removed a major obstacle to
foreign investment. In 1997, Guatemala met 1998, Hurricane Mitch caused relatively
its economic targets when GDP growth accelerated little damage to 4.1% and inflation
fell Guatemala compared to 9%. The government also increased tax revenues-historically
the lowest in Latin America-to 9% of GDP and created a new tax
administration. It also successfully placed $150 million in its neighbors. Nevertheless,
dollar-denominated notes in growth will be somewhat smaller due to the international markets. Debt service
costs should decline in 1998. storm. Remaining challenges for the
administration in 1998 challenges include completing a deal with the IMF increasing government revenues, and
stabilizing monetary policy. Throughout 1997, the Central Bank
maintained negotiating a tight money supply, helping to control inflation, but it
also caused high interest rates and led to operating losses for the
bank. Early in 1998, it relaxed its monetary policy in an effort to
correct these problems, but increased pressure on the quetzal has
prompted program with the bank to intervene to prop up its value. IMF.

The agricultural sector accounts for one-fourth
of GDP and GDP, two-thirds of exports exports, and employs more than half of the
labor force. Coffee, sugar, and bananas are the main products.
Manufacturing and construction account for one-fifth of GDP. Since
assuming office in January 1996, former President ARZU has worked to
implement a program of economic liberalization and political
modernization. The signing of the peace accords in December 1996,
which ended 36 years of civil war, removed a major obstacle to
foreign investment. In 1998, Hurricane Mitch caused relatively
little damage to Guatemala compared to its neighbors. Nevertheless,
growth will be somewhat smaller due to the storm. Remaining
challenges include increasing beefing up government revenues, and negotiating a
program with further assistance from international donors, and increasing the IMF. efficiency and openness of both government and private financial operations. Growth should remain at the same level in 2000 provided world agricultural prices do not plunge.

The agricultural sector accounts for about one-fourth of GDP, two-thirds of exports, and half of the labor force. Coffee, sugar, and bananas are the main products. Manufacturing and construction account for one-fifth of GDP. Since assuming office in January 1996, former Former President ARZU (1996-2000) worked to implement a program of economic liberalization and political modernization. The 1996 signing of the peace accords in December 1996, accords, which ended 36 years of civil war, removed a major obstacle to foreign investment. In 1998, Hurricane Mitch caused relatively little damage to Guatemala compared to its neighbors. Remaining Ongoing challenges include beefing up increasing government revenues, negotiating further assistance from international donors, and increasing the efficiency and openness of both government and private financial operations. Growth should remain at Despite low international prices for Guatemala's main commodities, the same level economy grew by 3% in 2000 provided world agricultural prices do not plunge. and is forecast to grow by 4% in 2001. Guatemala, along with Honduras and El Salvador, recently concluded a free trade agreement with Mexico and has moved to protect international property rights. However, the PORTILLO administration has undertaken a review of privatizations under the previous administration, thereby creating some uncertainty among investors.

The agricultural sector accounts for about one-fourth of GDP, two-thirds of exports, and half of the labor force. Coffee, sugar, and bananas are the main products. Former President ARZU (1996-2000) worked to implement a program of economic liberalization and political modernization. The 1996 signing of the peace accords, which ended 36 years of civil war, removed a major obstacle to foreign investment. In 1998, Hurricane Mitch caused relatively little damage to Guatemala compared to its neighbors. Ongoing challenges include increasing government revenues, negotiating further assistance from international donors, and increasing the efficiency and openness of both government and private financial operations. Despite low international prices for Guatemala's main commodities, the economy grew by 3% in 2000 and is forecast to grow by 4% 2.3% in 2001. Guatemala, along with Honduras and El Salvador, recently concluded a free trade agreement with Mexico and has moved to protect international property rights. However, the PORTILLO administration has undertaken a review of privatizations under the previous administration, thereby creating some uncertainty among investors.

The agricultural sector accounts for about one-fourth of GDP, two-thirds of exports, and half of the labor force. Coffee, sugar, and bananas are the main products. Former President ARZU (1996-2000) worked to implement a program of economic liberalization and political modernization. President PORTILLO has continued the liberalization program but with more sporadic results. The 1996 signing of the peace accords, which ended 36 years of civil war, removed a major obstacle to foreign investment. In 1998, Hurricane Mitch caused relatively little damage to Guatemala compared to its neighbors. investment, but numerous corruption scandals associated with the PORTILLO administration have dampened investor confidence. The distribution of income remains highly unequal, with perhaps 75% of the population below the poverty line. Ongoing challenges include increasing the government revenues, negotiating further assistance from international donors, and increasing the efficiency and openness of upgrading both government and private financial operations. Despite low international prices for Guatemala's main commodities, the economy grew by 3% in 2000 and 2.3% in 2001. Guatemala, along with Honduras operations, and El Salvador, recently concluded a narrowing the trade deficit. A free trade agreement with Mexico between the US and has moved Central American countries promises greater access to protect international property rights. However, the PORTILLO administration has undertaken a review of privatizations under the previous administration, thereby creating some uncertainty among investors. US and neighboring markets.

Guatemala is the largest and most populous of the Central American countries with a GDP per capita roughly one-half that of Brazil, Argentina, and Chile. The agricultural sector accounts for about one-fourth of GDP, two-thirds of exports, and half of the labor force. Coffee, sugar, and bananas are the main products. Former President ARZU (1996-2000) worked to implement a program of economic liberalization and political modernization. President PORTILLO has continued the liberalization program but with more sporadic results. The 1996 signing of the peace accords, which ended 36 years of civil war, removed a major obstacle to foreign investment, but numerous widespread political violence and corruption scandals associated with the PORTILLO administration have dampened continue to dampen investor confidence. The distribution of income remains highly unequal, with perhaps 75% of the population below the poverty line. Ongoing challenges include increasing the government revenues, negotiating further assistance from international donors, upgrading both government and private financial operations, curtailing drug trafficking, and narrowing the trade deficit. A free trade agreement between the US and Central American countries promises greater access to US and neighboring markets.

Guatemala is the largest and most populous of the Central American countries with a GDP per capita roughly one-half that of Brazil, Argentina, and Chile. The agricultural sector accounts for about one-fourth of GDP, two-thirds of exports, and half of the labor force. Coffee, sugar, and bananas are the main products. The 1996 signing of peace accords, which ended 36 years of civil war, removed a major obstacle to foreign investment, but widespread political violence and corruption scandals continue to dampen investor confidence. The distribution of income remains highly unequal, with perhaps 75% of the population below the poverty line. Ongoing Other ongoing challenges include increasing government revenues, negotiating further assistance from international donors, upgrading both government and private financial operations, curtailing drug trafficking, and narrowing the trade deficit.

Guatemala is the largest and most populous of the Central American countries with a GDP per capita roughly one-half that of Brazil, Argentina, and Chile. The agricultural sector accounts for about one-fourth of GDP, two-thirds of exports, and half of the labor force. Coffee, sugar, and bananas are the main products. The 1996 signing of peace accords, which ended 36 years of civil war, removed a major obstacle to foreign investment, but widespread political violence and corruption scandals continue to dampen investor confidence. The distribution of income remains highly unequal, unequal with perhaps 75% of the population below the poverty line. Other ongoing challenges include increasing government revenues, negotiating further assistance from international donors, upgrading both government and private financial operations, curtailing drug trafficking, and narrowing the trade deficit.

Guatemala is the largest and most populous of the Central American countries with a GDP per capita roughly one-half that of Brazil, Argentina, and Chile. The agricultural sector accounts for about one-fourth of GDP, two-thirds two-fifths of exports, and half of the labor force. Coffee, sugar, and bananas are the main products. The 1996 signing of peace accords, which ended 36 years of civil war, removed a major obstacle to foreign investment, but widespread political violence and corruption scandals continue Guatemala since then has pursued important reforms and macroeconomic stabilization. On 1 July 2006, the Central American Free Trade Agreement (CAFTA) entered in to dampen investor confidence. force between the US and Guatemala. The distribution of income remains highly unequal with perhaps 75% about 56% of the population below the poverty line. Other ongoing challenges include increasing government revenues, negotiating further assistance from international donors, upgrading both government and private financial operations, curtailing drug trafficking, and narrowing the trade deficit. Remittances from a large expatriate community that moved to the United States during the war have become the primary source of foreign income, exceeding the total value of exports and tourism combined.

Guatemala is the largest and most populous of the Central American countries with a GDP per capita roughly one-half that of Brazil, Argentina, Brazil, and Chile. The agricultural sector accounts for about one-fourth one-tenth of GDP, two-fifths of exports, and half of the labor force. Coffee, sugar, and bananas are the main products. 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. On 1 July 2006, the Central American Free Trade Agreement (CAFTA) entered in to into force between the US and Guatemala. Guatemala and has since spurred increased investment in the export sector. The distribution of income remains highly unequal with about 56% of the population below the poverty line. Other ongoing challenges include increasing government revenues, negotiating further assistance from international donors, upgrading both government and private financial operations, curtailing drug trafficking, trafficking and rampant crime, and narrowing the trade deficit. Remittances from a Given Guatemala's large expatriate community that moved to in the United States during the war have become States, it is the top remittance recipient in Central America, with inflows serving as a primary source of foreign income, exceeding the total value income equivalent to nearly two-thirds of exports and tourism combined. exports.

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. On 1 July 2006, the The Central American Free Trade Agreement (CAFTA) entered into force between the US and Guatemala in July 2006 and has since spurred increased investment in the export sector. 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 about 56% more than half of the population below the national poverty line. Other ongoing challenges include increasing government revenues, negotiating further assistance from international donors, upgrading both government and private financial operations, 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.

Guatemala is the most populous of the Central American countries with a GDP per capita roughly one-half that of Argentina, Brazil, the average for Latin America and Chile. the Caribbean. The agricultural sector accounts for about one-tenth of GDP, two-fifths nearly 15% of exports, GDP and half of the labor force. Coffee, force; key agricultural exports include coffee, sugar, and bananas are the main products, with sugar exports benefiting from increased global demand for ethanol. bananas. The 1996 signing of peace accords, which ended 36 years of civil war, removed a major obstacle to foreign investment, and Guatemala since then Guatemala has pursued important reforms and macroeconomic stabilization. The Central American Free Trade Agreement (CAFTA) entered into force in July 2006 and has since spurred spurring increased investment and diversification of exports, with the largest increases in ethanol and non-traditional agricultural exports. While CAFTA has helped improve the export sector, but investment climate, concerns over security, the lack of skilled workers and poor infrastructure continued continue to hamper foreign participation. direct investment. The distribution of income remains highly unequal with more the richest decile comprising over 40% of Guatemala's overall consumption. More than half of the population is below the national poverty line. Other ongoing challenges include increasing government revenues, negotiating further assistance from international donors, curtailing drug trafficking line and rampant crime, 15% lives in extreme poverty. Poverty among indigenous groups, which make up 38% of the population, averages 76% and narrowing extreme poverty rises to 28%. 43% of children under five are chronically malnourished, one of the trade deficit. highest malnutrition rates in the world. President COLOM entered into office with the promise to increase education, healthcare, and rural development, and in April 2008 he inaugurated a conditional cash transfer program, modeled after programs in Brazil and Mexico, that provide financial incentives for poor families to keep their children in school and get regular health check-ups. 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 fell in 2009 as export demand from US and other Central American markets drop fell and foreign investment slows slowed amid the global slowdown. recession, but the economy recovered gradually in 2010 and will likely return to more normal growth rates by 2012. President COLOM, in his last year in office, will likely face opposition to economic reform, particularly over a long-delayed tax reform and an IMF-recommended reform to strengthen the banking sector. Larger budget deficits and increased debt can be expected in 2011.

Guatemala is the most populous of the country in Central American countries America with a GDP per capita roughly one-half that of the average for Latin America and the Caribbean. The agricultural sector accounts for nearly 15% of GDP and half of the labor force; key agricultural exports include coffee, sugar, and bananas. The 1996 peace accords, which ended 36 years of civil war, removed a major obstacle to foreign investment, and since then Guatemala has pursued important reforms and macroeconomic stabilization. The Central Dominican Republic-Central American Free Trade Agreement (CAFTA) (CAFTA-DR) entered into force in July 2006 spurring increased investment and diversification of exports, with the largest increases in ethanol and non-traditional agricultural exports. While CAFTA CAFTA-DR has helped improve the investment climate, concerns over security, the lack of skilled workers and poor infrastructure continue to hamper foreign direct investment. The distribution of income remains highly unequal with the richest decile comprising over 10% of the population accounting for more than 40% of Guatemala's overall consumption. More than half of the population is below the national poverty line and 15% lives in extreme poverty. Poverty among indigenous groups, which make up 38% of the population, averages 76% and extreme poverty rises to 28%. 43% of children under five are chronically malnourished, one of the highest malnutrition rates in the world. President COLOM entered into office with the promise to increase education, healthcare, and rural development, and in April 2008 he inaugurated a conditional cash transfer program, modeled after programs in Brazil and Mexico, that provide financial incentives for poor families to keep their children in school and get regular health check-ups. 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. exports or one-tenth of GDP. Economic growth fell in 2009 as export demand from US and other Central American markets fell and foreign investment slowed amid the global recession, but the economy recovered gradually in 2010 and will likely return to more normal growth rates by 2012. President COLOM, in his last year in office, will likely face opposition to economic reform, particularly over a long-delayed tax reform and an IMF-recommended reform to strengthen the banking sector. Larger budget deficits and increased debt can be expected in 2011.

Guatemala is the most populous country in Central America with a GDP per capita roughly one-half that of the average for Latin America and the Caribbean. The agricultural sector accounts for nearly 15% 13% of GDP and half 38% of the labor force; key agricultural exports include coffee, sugar, bananas, and bananas. vegetables. The 1996 peace accords, which ended 36 years of civil war, removed a major obstacle to foreign investment, and since then Guatemala has pursued important reforms and macroeconomic stabilization. The Dominican Republic-Central American Free Trade Agreement (CAFTA-DR) entered into force in July 2006 spurring increased investment and diversification of exports, with the largest increases in ethanol and non-traditional agricultural exports. While CAFTA-DR has helped improve the investment climate, concerns over security, the lack of skilled workers and poor infrastructure continue to hamper foreign direct investment. The distribution of income remains highly unequal with the richest 10% 20% of the population accounting for accountingfor more than 40% 51% of Guatemala's overall consumption. More than half of the population is below the national poverty line and 15% 13% of the population lives in extreme poverty. Poverty among indigenous groups, which make up 38% of the population, averages 76% 73% and extreme poverty rises to 28%. 43% Nearly one-half of Guatemala's children under age five are chronically malnourished, one of the highest malnutrition rates in the world. President COLOM entered into office with the promise to increase education, healthcare, and rural development, and in April 2008 he inaugurated a conditional cash transfer program, modeled after programs in Brazil and Mexico, that provide financial incentives for poor families to keep their children in school and get regular health check-ups. 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 two-fifths of exports or one-tenth of GDP. Economic growth fell in 2009 as export demand from US and other Central American markets fell dropped and foreign investment slowed amid the global recession, but the recession. The economy recovered gradually in 2010 and will likely return to more normal growth rates by 2012. President COLOM, in his last year recovered in office, will likely face opposition to economic reform, particularly over a long-delayed tax reform and an IMF-recommended reform to strengthen the banking sector. 2010-12.

Guatemala is the most populous country in Central America with a GDP per capita roughly one-half that of the average for Latin America and the Caribbean. The agricultural sector accounts for 13% of GDP and 38% of the labor force; key agricultural exports include coffee, sugar, bananas, and vegetables. The 1996 peace accords, which ended 36 years of civil war, removed a major obstacle to foreign investment, and since then Guatemala has pursued important reforms and macroeconomic stabilization. The Dominican Republic-Central American Free Trade Agreement (CAFTA-DR) entered into force in July 2006 spurring increased investment and diversification of exports, with the largest increases in ethanol and non-traditional agricultural exports. While CAFTA-DR has helped improve the investment climate, concerns over security, the lack of skilled workers and poor infrastructure continue to hamper foreign direct investment. The distribution of income remains highly unequal with the richest 20% of the population accountingfor accounting for more than 51% of Guatemala's overall consumption. More than half of the population is below the national poverty line and 13% of the population lives in extreme poverty. Poverty among indigenous groups, which make up 38% of the population, averages 73% and extreme poverty rises to 28%. Nearly one-half of Guatemala's children under age five are chronically malnourished, one of the highest malnutrition rates in the world. Given Guatemala's 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-fifths of exports or one-tenth of GDP. Economic growth fell in 2009 as export demand from US and other Central American markets dropped and foreign investment slowed amid the global recession. The economy gradually recovered in 2010-12.

Guatemala is the most populous country in Central America with a GDP per capita roughly one-half that of the average for Latin America and the Caribbean. The agricultural sector accounts for 13% 13.5% of GDP and 38% 30% of the labor force; key agricultural exports include coffee, sugar, bananas, and vegetables. The 1996 peace accords, which ended 36 years of civil war, removed a major obstacle to foreign investment, and since then Guatemala has pursued important reforms and macroeconomic stabilization. The Dominican Republic-Central American America Free Trade Agreement (CAFTA-DR) entered into force in July 2006 2006, spurring increased investment and diversification of exports, with the largest increases in ethanol and non-traditional agricultural exports. While CAFTA-DR has helped improve the investment climate, concerns over security, the lack of skilled workers workers, and poor infrastructure continue to hamper foreign direct investment. The distribution of income remains highly unequal with the richest 20% of the population accounting for more than 51% of Guatemala's overall consumption. More than half of the population is below the national poverty line line, and 13% of the population lives in extreme poverty. Poverty among indigenous groups, which make up 38% more than 40% of the population, averages 73% and 73%, with 22% of the indigenous population living in extreme poverty rises to 28%. poverty. Nearly one-half of Guatemala's children under age five are chronically malnourished, one of the highest malnutrition rates in the world. Given Guatemala''s large expatriate community in the United States, it Guatemala is the top remittance recipient in Central America, with inflows serving America as a result of Guatemala's large expatriate community in the United States. These inflows are a primary source of foreign income income, equivalent to nearly two-fifths one-half of the country's exports or one-tenth of its GDP. Economic growth fell in 2009 as export demand from US and other Central American markets dropped and foreign investment slowed amid the global recession. The economy gradually recovered in 2010-12.

Guatemala is the most populous country in Central America with a GDP per capita roughly one-half that of the average for Latin America and the Caribbean. The agricultural sector accounts for 13.5% 13.7% of GDP and 30% 32% of the labor force; key agricultural exports include coffee, sugar, coffee, bananas, and vegetables. The 1996 peace accords, which ended 36 years of civil war, removed a major obstacle to foreign investment, and since then Guatemala has pursued important reforms and macroeconomic stabilization. The Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) entered into force in July 2006, spurring increased investment and diversification of exports, with the largest increases in ethanol and non-traditional agricultural exports. While CAFTA-DR has helped improve the investment climate, concerns over security, the lack of skilled workers, and poor infrastructure continue to hamper foreign direct investment. The distribution of income remains highly unequal with the richest 20% of the population accounting for more than 51% of Guatemala's overall consumption. More than half of the population is below the national poverty line, and 13% of the population lives in extreme poverty. Poverty among indigenous groups, which make up more than 40% of the population, averages 73%, with 22% of the indigenous population living in extreme poverty. Nearly one-half of Guatemala's children under age five are chronically malnourished, one of the highest malnutrition rates in the world. Guatemala is the top remittance recipient in Central America as a result of Guatemala's large expatriate community in the United States. These inflows are a primary source of foreign income, equivalent to one-half of the country's exports or one-tenth of its GDP. In November 2014 along with his counterparts from El Salvador and Honduras, President PEREZ MOLINA announced the “Plan of the Alliance for Prosperity in the Northern Triangle.” This plan seeks to address the challenges facing the three Northern Triangle countries, including steps the governments will take to stimulate economic growth, increase transparency and fiscal responsibility, reduce violence, modernize the justice system, improve infrastructure, and promote educational opportunities over the next several years.

Guatemala is the most populous country in Central America with a GDP per capita roughly one-half that of half the average for Latin America and the Caribbean. The agricultural sector accounts for 13.7% 13.6% of GDP and 32% 31% of the labor force; key agricultural exports include sugar, coffee, bananas, and vegetables. Guatemala is the top remittance recipient in Central America as a result of Guatemala's large expatriate community in the US. These inflows are a primary source of foreign income, equivalent to over one-half of the country's exports or one-tenth of its GDP.
The 1996 peace accords, which ended 36 years of civil war, removed a major obstacle to foreign investment, and since then Guatemala has pursued important reforms and macroeconomic stabilization. The Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) entered into force in July 2006, spurring increased investment and diversification of exports, with the largest increases in ethanol and non-traditional agricultural exports. While CAFTA-DR has helped improve the investment climate, concerns over security, the lack of skilled workers, and poor infrastructure continue to hamper foreign direct investment.
The distribution of income remains highly unequal with the richest 20% of the population accounting for more than 51% of Guatemala's overall consumption. More than half of the population is below the national poverty line, and 13% 23% of the population lives in extreme poverty. Poverty among indigenous groups, which make up more than 40% of the population, averages 73%, 79%, with 22% 39.8% of the indigenous population living in extreme poverty. Nearly one-half of Guatemala's children under age five are chronically malnourished, one of the highest malnutrition rates in the world.
Guatemala is the top remittance recipient in Central America as a result of Guatemala's large expatriate community facing growing fiscal pressures exacerbated by multiple corruption scandals in the United States. These inflows are a primary source of foreign income, equivalent 2015 that led to one-half of the country's exports or one-tenth of its GDP. In November 2014 along with his counterparts from El Salvador and Honduras, President PEREZ MOLINA announced the “Plan resignation of the Alliance for Prosperity in the Northern Triangle.” This plan seeks to address the challenges facing the three Northern Triangle countries, including steps the governments will take to stimulate economic growth, increase transparency and fiscal responsibility, reduce violence, modernize the justice system, improve infrastructure, president, vice president, and promote educational opportunities over the next several years. numerous high-level economic officials.

Guatemala is the most populous country in Central America with a GDP per capita roughly half the average for Latin America and the Caribbean. The agricultural sector accounts for 13.6% 13.5% of GDP and 31% of the labor force; key agricultural exports include sugar, coffee, bananas, and vegetables. Guatemala is the top remittance recipient in Central America as a result of Guatemala's large expatriate community in the US. These inflows are a primary source of foreign income, equivalent to over one-half of the country's exports or and one-tenth of its GDP.
The 1996 peace accords, which ended 36 years of civil war, removed a major obstacle to foreign investment, and since then Guatemala has since pursued important reforms and macroeconomic stabilization. The Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) entered into force in July 2006, spurring increased investment and diversification of exports, with the largest increases in ethanol and non-traditional agricultural exports. While CAFTA-DR has helped improve the investment climate, concerns over security, the lack of skilled workers, and poor infrastructure continue to hamper foreign direct investment.
The distribution of income remains highly unequal with the richest 20% of the population accounting for more than 51% of Guatemala's overall consumption. More than half of the population is below the national poverty line, and 23% of the population lives in extreme poverty. Poverty among indigenous groups, which make up more than 40% of the population, averages 79%, with 39.8% 40% of the indigenous population living in extreme poverty. Nearly one-half of Guatemala's children under age five are chronically malnourished, one of the highest malnutrition rates in the world.
Guatemala is facing growing fiscal pressures pressures, exacerbated by multiple corruption scandals in 2015 that led to the resignation of the president, vice president, and numerous high-level economic officials. officials in 2015.

Guatemala is the most populous country in Central America with a GDP per capita roughly half the average for Latin America and the Caribbean. The agricultural sector accounts for 13.5% of GDP and 31% of the labor force; key agricultural exports include sugar, coffee, bananas, and vegetables. Guatemala is the top remittance recipient in Central America as a result of Guatemala's large expatriate community in the US. These inflows are a primary source of foreign income, equivalent to over one-half two-thirds of the country's exports and one-tenth about a tenth of its GDP.
The 1996 peace accords, which ended 36 years of civil war, removed a major obstacle to foreign investment, and Guatemala has since pursued important reforms and macroeconomic stabilization. The Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) entered into force in July 2006, spurring increased investment and diversification of exports, with the largest increases in ethanol and non-traditional agricultural exports. While CAFTA-DR has helped improve the investment climate, concerns over security, the lack of skilled workers, and poor infrastructure continue to hamper foreign direct investment.
The distribution of income remains highly unequal with the richest 20% of the population accounting for more than 51% of Guatemala's overall consumption. More than half of the population is below the national poverty line, and 23% of the population lives in extreme poverty. Poverty among indigenous groups, which make up more than 40% of the population, averages 79%, with 40% of the indigenous population living in extreme poverty. Nearly one-half of Guatemala's children under age five are chronically malnourished, one of the highest malnutrition rates in the world.
Guatemala is facing growing fiscal pressures, exacerbated by multiple corruption scandals that led to the resignation of the president, vice president, and numerous high-level economic officials in 2015.

Guatemala is the most populous country in Central America with a GDP per capita roughly half the average for Latin America and the Caribbean. The agricultural sector accounts for 13.5% of GDP and 31% of the labor force; key agricultural exports include sugar, coffee, bananas, and vegetables. Guatemala is the top remittance recipient in Central America as a result of Guatemala's large expatriate community in the US. These inflows are a primary source of foreign income, equivalent to two-thirds of the country's exports and about a tenth of its GDP.
The 1996 peace accords, which ended 36 years of civil war, removed a major obstacle to foreign investment, and Guatemala has since pursued important reforms and macroeconomic stabilization. The Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) entered into force in July 2006, spurring increased investment and diversification of exports, with the largest increases in ethanol and non-traditional agricultural exports. While CAFTA-DR has helped improve the investment climate, concerns over security, the lack of skilled workers, and poor infrastructure continue to hamper foreign direct investment.
The distribution of income remains highly unequal with the richest 20% of the population accounting for more than 51% of Guatemala's overall consumption. More than half of the population is below the national poverty line, and 23% of the population lives in extreme poverty. Poverty among indigenous groups, which make up more than 40% of the population, averages 79%, with 40% of the indigenous population living in extreme poverty. Nearly one-half of Guatemala's children under age five are chronically malnourished, one of the highest malnutrition rates in the world.