Economy Guatemala
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. President PORTILLO has continued the
liberalization program but with more sporadic results. The 1996
signing of the peace accords, which ended 36 years of civil war,
removed a major obstacle to foreign investment, but numerous
corruption scandals associated with the PORTILLO administration have
dampened investor confidence. The distribution of income remains
highly unequal, with perhaps 75% of the population below the poverty
line. Ongoing challenges include increasing the government revenues,
negotiating further assistance from international donors, upgrading
both government and private financial operations, and narrowing the
trade deficit. A free trade agreement between the US and Central
American countries promises greater access to US and neighboring
markets.
GDP:
purchasing power parity - $53.2 billion (2002 est.)
GDP - real growth rate:
2.2% (2002 est.)
GDP - per capita:
purchasing power parity - $3,900 (2002 est.)
GDP - composition by sector: agriculture: 23% industry: 20% services: 57% (2001 est.)
Population below poverty line: 75% (2002 est.)
Household income or consumption by percentage share: lowest 10%: 1.6% highest 10%: 46% (1998)
Distribution of family income - Gini index:
55.8 (1998)
Inflation rate (consumer prices):
8.1% (2002 est.)