Attractive Marketplace Country Snapshot: Guatemala

After several moribund decades hindered by corruption, under‑developed human capital, and an inconsistent regulatory framework,¹ Guatemala is now capitalising on its strategic advantages as an attractive marketplace for investors. Located close to both North and South American markets, and with easy access to both the Pacific and Atlantic Oceans, it is the largest economy in Central America by population (17.6 million)² and GDP (US$ 120.9 billion).³

Guatemala’s property rights and legal protection regime still faces challenges, including land titling and registration concerns, as well as indigenous land claims. Following President Bernardo Arévalo’s agenda for economic growth and anti‑corruption,⁴ and a commitment to upholding citizens’ rights in line with the constitution, such issues have improved.⁵

The country’s ability to attract investments has improved in recent years, exceeding national targets.⁶ The government’s 2020–2024 investment initiative, “Guatemala Moving Forward”, has promoted how nearshoring businesses can benefit from relatively affordable pricing for electricity, real estate, water supply, and human resources. The country has a diversified economy and is making gains in driving new business opportunities in agriculture⁷ (where it has a comparative advantage) and in light manufacturing.⁸ All this is underpinned by Guatemala’s record of macroeconomic stability and inflation control, thanks to a legacy of prudent monetary and fiscal policies.⁹

Guatemala’s relatively underdeveloped logistics capability and infrastructure have long hindered economic development.¹⁰ However, the country’s major ports are poised to modernise, with significant investment in Puerto Quetzal on the Pacific Ocean and Puerto Santo Tomás de Castilla on the Atlantic Ocean.^{11 12} The country’s road network is also being upgraded under the Road Development Plan (2018–2032).¹³ The upgraded Escuintla‑Puerto Quetzal highway (Guatemala’s first approved PPP project) began construction in July 2024, marking an important step towards more efficient transport, sustainable tourism, and social investment in the south of the country.¹⁴

The government is also working across ministries and agencies to provide digital tools and statistics to support clearer and more stable business regulations, promoting greater transparency, and facilitating a more conducive environment for business development.¹⁵ The 2021 Law for the Simplification of Administrative Requirements and Procedures has made it easier for citizens and businesses to interact with government agencies by streamlining bureaucratic processes, reducing required documentation and digitising procedures.¹⁶ These developments highlight Guatemala’s commitment to enhancing competitiveness, promoting investment opportunities, and further legislative reforms aimed at supporting economic growth.¹⁷

Endnotes

1. U.S. Department of State. (2024). 2024 Investment Climate Statements: Guatemala. https://www.state.gov/reports/2024-investment-climate-statements/guatemala/
2. World Bank Group. (17 April 2025). The World Bank in Guatemala: Overview. https://www.worldbank.org/en/country/guatemala/overview
3. International Monetary Fund (IMF). (2025). Real GDP growth – Annual percent change. https://www.imf.org/external/datamapper/NGDP_RPCH@WEO/GTM?zoom=GTM&highlight=GTM
4. Méndez-Dardón, A. M. (15 January 2025). Q&A: A Year in Review for Guatemala’s President Bernardo Arévalo. WOLA. https://www.wola.org/analysis/qa-a-year-in-review-for-guatemalas-president-bernardo-arevalo/
5. McConahay, M. J. (17 January 2024). High Hopes as Guatemalans Celebrate New President. American Community Media. https://americancommunitymedia.org/international-affairs/high-hopes-as-guatemalans-celebrate-new-president/
6. Guatemalan Chamber of Industry (CIG). (22 February 2024). Guatemala Business Guide (GBG) 2022 & 2023. https://www.pronacom.org/wp-content/uploads/2024/02/GUATEMALAS-BUSINESS-GUIDEENG.pdf
7. Invest Guatemala. (n.d.) Agroindustry. https://investguatemala.com/agroindustry/
8. International Finance Corporation (IFC). (2023). Country Private Sector Diagnostic: Creating Markets in Guatemala – Unlocking Private Sector Potential to Achieve Sustainable and Inclusive Growth and Economic Development. https://www.ifc.org/content/dam/ifc/doc/2023/guatemala-country-private-sector-diagnostic-en.pdf
9. International Monetary Fund. Western Hemisphere Dept. (5 August 2024). Guatemala: 2024 Article IV Consultation‑Press Release; and Staff Report. https://doi.org/10.5089/9798400287398.002
10. Logistics Cluster. (n.d.) Guatemala Logistics Infrastructure. https://lca.logcluster.org/2-guatemala-logistics-infrastructure
11. U.S. Department of State. (5 February 2025). Secretary of State Marco Rubio and Guatemalan President Bernardo Arévalo at a Joint Press Availability. https://www.state.gov/secretary-of-state-marco-rubio-and-guatemalan-president-bernardo-arevalo-at-a-joint-press-availability/
12. Comisión Portuaria Nacional Guatemala. (n.d.) https://cpn.gob.gt
13. BNamericas. (5 April 2019). Guatemala unveils road development plan. https://www.bnamericas.com/en/news/guatemala-unveils-road-development-plan
14. Munoz, Y. (3 June 2024). Construction of the Escuintla-Puerto Quetzal highway will begin in July. https://agn.gt/en-julio-empezara-construccion-de-autopista-escuintlapuerto-quetzal/
15. Invest Guatemala. (10 January 2024). Innovation in Labor Management – MINTRAB and Guatemala Does Not Stop. https://investguatemala.com/es/2024/01/10/innovacion-en-la-gestion-laboral-mintrab-y-guatemala-nose-detiene/
16. Guatemalan-Canadian Chamber of Commerce (CANCHAM). (21 September 2021). Webinar: Raising competitiveness through streamlining and simplification of procedures. https://www.cancham.org.gt/en/webinar-raising-competitiveness-through-streamlining-and-simplification-of-procedures/
17. U.S. Department of State. (2024). 2024 Investment Climate Statements: Guatemala. https://www.state.gov/reports/2024-investment-climate-statements/guatemala/