Guatemala Economy 2008

Economy - overview:
Guatemala is the largest and 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-fourth 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 Central American Free Trade Agreement (CAFTA) entered into force between the US and 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 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.

GDP (purchasing power parity):
$67.45 billion (2007 est.)

GDP (official exchange rate):
$31.35 billion (2007 est.)

GDP - real growth rate:
5.6% (2007 est.)

GDP - per capita (PPP):
$5,400 (2007 est.)

GDP - composition by sector:
agriculture: 13.8%
industry: 27.9%
services: 58.3% (2007 est.)

Labor force:
3.958 million (2007 est.)

Labor force - by occupation:
agriculture: 50%
industry: 15%
services: 35% (1999 est.)

Unemployment rate:
3.2% (2005 est.)

Population below poverty line:
56.2% (2004 est.)

Household income or consumption by percentage share:
lowest 10%: 0.9%
highest 10%: 43.4% (2002)

Distribution of family income - Gini index:
55.1 (2007)

Inflation rate (consumer prices):
6.6% (2007 est.)

Investment (gross fixed):
15.9% of GDP (2007 est.)

Budget:
revenues: $4.301 billion
expenditures: $5.219 billion (2007 est.)

Public debt:
23.3% of GDP (2007 est.)

Agriculture - products:
sugarcane, corn, bananas, coffee, beans, cardamom; cattle, sheep, pigs, chickens

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

Industrial production growth rate:
5.9% (2007 est.)

Electricity - production:
7.281 billion kWh (2005)

Electricity - consumption:
6.361 billion kWh (2005)

Electricity - exports:
339 million kWh (2005)

Electricity - imports:
23 million kWh (2005)

Oil - production:
20,100 bbl/day (2006 est.)

Oil - consumption:
73,510 bbl/day (2006 est.)

Oil - exports:
15,560 bbl/day (2006 est.)

Oil - imports:
72,960 bbl/day (2006 est.)

Oil - proved reserves:
526 million bbl (1 January 2006 est.)

natural gas - production:
0 cu m (2005 est.)

natural gas - consumption:
0 cu m (2005 est.)

natural gas - exports:
0 cu m (2005 est.)

natural gas - imports:
0 cu m (2005)

natural gas - proved reserves:
2.96 billion cu m (1 January 2006 est.)

Current account balance:
-$1.772 billion (2007 est.)

Exports:
$7.468 billion f.o.b. (2007 est.)

Exports - commodities:
coffee, sugar, petroleum, apparel, bananas, fruits and vegetables, cardamom

Exports - partners:
US 44.6%, El Salvador 11.9%, Honduras 7.2%, Mexico 5.2% (2006)

Imports:
$12.67 billion f.o.b. (2007 est.)

Imports - partners:
US 33.3%, Mexico 8.8%, China 6.5%, El Salvador 5.3%, South Korea 4.9% (2006)

Economic aid - recipient:
$253.6 million (2005 est.)

Reserves of foreign exchange and gold:
$4.559 billion (31 December 2007 est.)

Debt - external:
$5.561 billion (31 December 2007 est.)

Market value of publicly traded shares:
$NA

Currency (code):
quetzal (GTQ), US dollar (USD), others allowed

Exchange rates:
quetzales per US dollar - 7.6833 (2007), 7.6026 (2006), 7.6339 (2005), 7.9465 (2004), 7.9409 (2003)