THE 9 MOST IMPORTANT ECONOMIC ACTIVITIES IN GUATEMALA - CULTURE VOCABULARY - 2025

The economic activities in Guatemala have allowed the country to be sustainable in itself and also is guaranteed to be among the top ten stable economies in Latin America.

Guatemala is a country located in Central America that to date has about 16 million inhabitants, which are distributed in 1687 kilometers, with borders with Mexico to the north, Honduras and El Salvador, with Spanish being the predominant language, in addition of the 23 dialects, including 21 Mayan, Xinca and Garífuna dialects.

Guatemala has made significant macroeconomic progress after a 36-year civil war. Since the signing of the Peace Accords in 1996, the country has improved its access to international markets through various trade agreements.

You may also be interested in these curiosities of Guatemala.

Activities that make Guatemala the strongest economy in Central America

1- Agricultural sector

Livestock and agriculture have earned Guatemala a quarter of the Gross Domestic Price. In this sector, the plantation and import of coffee, sugar cane, cotton and an immense quantity of vegetables such as cassava are continuously exploited.

On the livestock side, Guatemala exploits the importation of cattle and red meat to Honduras and El Salvador, thus saving a part for the nation's internal consumption.

2- Fishing sector

In the main, the southern coasts anchor fishing in Guatemala. The increase in the income of the currency (US $ 35 to 52 million) is represented by the exports of products of high commercial value such as shrimp, sharks, dolphin fish, common squid, lobster, snapper and tuna.

3- Mining sector

Guatemala is characterized by having one of the largest nickel reserves in the world. The operating license for the Niquelgua Montufar II mine was granted in April 2013 to a subsidiary of Solway Group, Compañía Guatemalteca de Níquel, in which the state of Guatemala has a 1.8% stake.

The total investment in the Fenix ​​plant is $ 1.5 billion. The mine and plant is located in eastern Guatemala, in the state of Izabal, located 150 km by road from the nearest commercial port, Santo Tomás, which can handle Handysize vessels and has the capacity to accommodate bulk cargoes.

In addition to nickel, Guatemala has large amounts of gold. In 2007, a single mine processed 1.7 million tons of ore with an average gold content of 4.55 grams per ton and 84.31 grams of silver per ton. El Pato, a specialized mine for the precious metal, is in eastern Guatemala.

Several major and junior resource companies are active there, including the Escobal property of Tahoe Resource with its indicated resource of 310 million ounces of silver and the Cerro Blanco property of Goldcorp with its indicated resource of 1.3 million ounces of gold.

4- Tourism sector

The costume dance in Guatemala is one of the most important folk dances.

During the spring and summer, Guatemalans welcome tourists to their picturesque cities such as Antigua and Panachajel, thus exploiting the sale of native foods, ornamental stones such as jade, handcrafted textiles, trips along its coasts and tours that stand out along the routes of the Colonial helmet of the aforementioned cities.

According to the Community Tourism Alliance in Guatemala, almost 15% of the eligible workforce is dedicated to the tourism industry - an industry that comprises almost a quarter of the national GDP. Consequently, many Guatemalans work in this industry, due to the money earned by tourists who buy their products.

5- Export sector

Huipil. One of the most typical costumes in Guatemala

The export of products in the different branches of national production is a consequence of the growing economic activity of the region, since due to its borders and ports, Guatemala has known how to take advantage of its geographical advantage, so that foreign trade is one of the largest forms of foreign exchange earnings to the country.

In addition to the border countries, the export union with the United States of America has created profitable alliances. Guatemala is currently the 43rd trade partner for goods with 10 billion dollars in total two-way merchandise trade. Exports of goods totaled $ 5.9 billion.

Imports of goods totaled $ 4.1 billion. The US goods trade surplus with Guatemala was $ 1.7 billion in 2015.

The main export categories (2-digit HS) are mineral fuels ($ 1.6 billion), machinery ($ 522 million), electrical machinery ($ 339 million) and cereals such as wheat ($ 324 million).

US exports of agricultural products to Guatemala total about $ 1.1 billion in the main categories, which include corn, wheat, poultry and cotton.

6- Oil sector

The oil business in Guatemala has gone through several stages, including coups, intervention by the United States, nationalizations and neoliberalism. All these facts aside, the oil industry maintains Guatemala as an economic option compared to other countries such as Venezuela.

Guatemala is the largest oil producer in Central America, producing small volumes of crude; the majority sent to the United States for refining or domestic consumption.

Guatemala's 526 million barrels of reserves are located mainly in the jungles of the north of the Petén basin. For much of the 20th century, civil war prevented the development of hydrocarbon resources.

Since the Guatemalan oil industry was first opened up to foreign investors, one firm has consistently dominated the industry.

As of September 2001, the European exploration company Perenco controlled oil production in Guatemala. In September 2001, Perenco purchased Basic Resources International, a wholly owned subsidiary of Andarko Petroleum Corporation.

The sale included all the existing oil fields in the country, a 275-mile crude oil pipeline, a 2,000 bbl / d mini-refinery, as well as storage and loading facilities.

7- Infrastructure sector

As Guatemala has been a growing economy in the last decade, the country's infrastructure is undergoing major changes. The contracting of the public and private sectors for large works has been in place for about four years in order to improve the quality of public services.

The benefits of higher and well-targeted public investment in infrastructure would greatly outweigh fiscal costs and promote economic and social development in Guatemala.

8- Public and private sector

The construction project of the State Administrative Center, estimated at 200 million dollars, is the only one that has begun to be executed since the National Agency of Associations for the Development of Economic Infrastructure (ANADIE) was created in 2013.

In addition to the State Administrative Center, there is also the project of an urban rail transport system for passengers from the Northeast, the Pacific train, the Tecún Uman intermodal logistics port and a solid waste plant and the North-South highway interconnection axis.

9- Environmental sector

Today, the creation of the Corporate Environmental Management Unit is in process, which will operate under the Development Directorate of Guatemala, in order to promote the systematic environmental competitiveness of the Guatemalan export sector, through responsible environmental practices.

At the same time, it seeks to promote green businesses as an alternative form of income, employment and poverty reduction, especially in rural areas.

During the last few years, technology in Guatemala has not yet adapted to the world forefront. Small advances from the smallest communities have paid off. USAID helped introduce the technological model in rural primary schools in Guatemala that integrated the active participation of the entire community.

Groups of parents were formed to equip the centers, obtain electricity and adequate security, and establish administrative and use policies. Teachers participated in extensive training to bring their new skills and knowledge to elementary students. Today, hundreds of children in the department of Quiché are using computers to learn to read and write their first letters in their Mayan languages.

It is expected that the technology in the country will be coupled with the new international measures of internet browsing, in addition to the accommodation that it brings in the field of machinery, transportation and health in the life of the Guatemalan, thus bringing private and public investment by medium and large local and international companies.