Guatemala Economy 2001

Economy - overview: 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% 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.

GDP: purchasing power parity - $46.2 billion (2000 est.)

GDP - real growth rate: 3% (2000 est.)

GDP - per capita: purchasing power parity - $3,700 (2000 est.)

GDP - composition by sector:
agriculture: 23%
industry: 20%
services: 57% (2000 est.)

Population below poverty line: 60% (2000 est.)

Household income or consumption by percentage share:
lowest 10%: 0.6%
highest 10%: 46.6% (1989)

Inflation rate (consumer prices): 6% (2000 est.)

Labor force: 4.2 million (1999 est.)

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

Unemployment rate: 7.5% (1999 est.)

Budget:
revenues: $2.2 billion
expenditures: $1.8 billion, including capital expenditures of $NA (2001 est.)

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

Industrial production growth rate: 4.1% (1999)

Electricity - production: 3.785 billion kWh (1999)

Electricity - production by source:
fossil fuel: 38.31%
hydro: 61.69%
nuclear: 0%
other: 0% (1999)

Electricity - consumption: 3.295 billion kWh (1999)

Electricity - exports: 435 million kWh (1999)

Electricity - imports: 210 million kWh (1999)

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

Exports: $2.9 billion (f.o.b., 2000)

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

Exports - partners: US 51.4%, El Salvador 8.7%, Honduras 5%, Costa Rica 3.4%, Germany 2.7% (1998)

Imports: $4.4 billion (f.o.b., 2000)

Imports - commodities: fuels, machinery and transport equipment, construction materials, grain, fertilizers, electricity

Imports - partners: US 42.8%, Mexico 9.9%, Japan 4.8%, El Salvador 4.3%, Venezuela 3.8% (1998)

Debt - external: $4.7 billion (2000 est.)

Economic aid - recipient: $212 million (1995)

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

Currency code: GTQ; USD

Exchange rates: quetzales per US dollar - 7.8020 (January 2001), 7.7632 (2000), 7.3856 (1999), 6.3947 (1998), 6.0653 (1997), 6.0495 (1996), 5.8103 (1995)

Fiscal year: calendar year

NOTE: The information regarding Guatemala on this page is re-published from the 2001 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Guatemala Economy 2001 information contained here. All suggestions for corrections of any errors about Guatemala Economy 2001 should be addressed to the CIA.