Economic trends
Guatemala's GDP amounts to 38 billions of USD, with a growth rate of 4% in 2008.
Guatemala’s economy was strongly shattered by the civil war that lasted several years. Recently, the global financial crisis has had a strong impact in the economical and social lives of the country, with a rise in basic food prices, a drop in capital transfers by the expatriates and an increase in unemployment and poverty. The unfavorable weather and the impoverished soils, have worsen the situation and the country is facing a real humanitarian food crisis. The Guatemalan government is currently talking about a "state of public catastrophe".
The country is also stricken by other difficulties, such as crime and corruption, which hinder tourism and business. The government has launched important reforms since 2004.
Main branches of industry
The agricultural sector accounts for 10% of 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 one fourth of GDP and employs 15% of its population. It stands mainly from textiles, paper and pharmaceutical products, as well as rubber transformation industries. It has to be noted that since Guatemala's entry into the Free Trade Area of the Americas (FTAA) put in place by the United States, the advantages in customs have brought an increment in investments and the establishment of American companies in the country.
The service sector represents the largest part of GDP accounting for more than 60%. The tourism industry is very dynamic and continues to grow.
International trade
Guatemala is one of the five countries that compound the Central American Common Market (CACM) along with Costa Rica, El Salvador, Honduras and Nicaragua. The FTAA (or ALCA) agreement 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 coffee, sugar, petrol, textile (fabrication), fruits, vegetables and cardamon. Guatemala's main export partners are: the United States, Salvador, Honduras, Mexico and Costa Rica. The main import partners are: the United States, Mexico, China, Salvador and Costa Rica.
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