Monday, August 19, 2013
Rank and Economy of Guatemala
such as IMF, WB, and CIA using nominal method
Guatemala is the most populous of the Central American countries with a GDP per capita roughly one-third that of Argentina, Brazil, and Chile. Coffee, sugar, and bananas are the main products. The 1996 signing of peace accords, which ended 36 years of civil war, removed a major obstacle to foreign investment, and Guatemala since then has pursued important reforms and macroeconomic stabilization. On 1 July 2006, the Central American Free Trade Agreement (CAFTA) entered into force between the US and Guatemala and has since spurred increased investment in the export sector. The distribution of income remains highly unequal with 12% of the population living below the international poverty line. Given Guatemala's large expatriate community in the United States, it is the top remittance recipient in Central America, with inflows serving as a primary source of foreign income equivalent to nearly two-thirds of exports.
Guatemala's Gross domestic product for 2000 was estimated at $19.1 billion, with real growth slowing to approximately 3.3%. Ten years later in 2000 it rose by 1 to 4% and in 2010 it decreased back to 3% (World Bank). After the signing of the final peace accord in December 1996, Guatemala was well-positioned for rapid economic growth over the next 10 years.
Guatemala's economy is dominated by the private sector, which generates about 85% of GDP. Most manufacturing is light assembly and food processing, geared to the domestic, U.S., and Central American markets. In 1990 the labor force participation rate for women was 42%, it increased by 1% in 2000 to 43% and in 2010 it increased at 51%. For men the labor for participation rate in 1990 was about 89%, in 2000 it actually decreased to 88% and in 2010 increased up to 90% (World Bank). In terms of self-employment the percentage for men is about 50% while women take up about 32% (Pagàn 1). Over the past several years, tourism and exports of textiles, apparel, and nontraditional agricultural products such as winter vegetables, fruit, and cut flowers have boomed, while more traditional exports such as sugar, bananas, and coffee continue to represent a large share of the export market.Over the past twenty years the percentage of exports of goods and services has fluctuated. In 1990 it was 21% and in 2000, 20%. It increased again in 2010 to 26%.on the other hand its level of imports of goods and services has continually increased. In 1990 its imports of goods and services was about 25%. In 2000 it increased b by 4% up to 29%, and in 2010 it increased up to 36%. Migration is another important avenue in Guatemala. According to Cecilia Menjivar, remittances are “central to the economy.” These remittances come from men’s migration, to the U.S. in 2004 remittances to Guatemala accounted for approximately 97% (Menjivar 2).
The United States is the country's largest trading partner, providing 36% of Guatemala's imports and receiving 40% of its exports. The government sector is small and shrinking, with its business activities limited to public utilities—some of which have been privatized—ports and airports and several development-oriented financial institutions. Guatemala was certified to receive export trade benefits under the United States' Caribbean Basin Trade and Partnership Act (CBTPA) in October 2000, and enjoys access to U.S. Generalized System of Preferences (GSP) benefits. Due to concerns over serious worker rights protection issues, however, Guatemala's benefits under both the CBTPA and GSP are currently under review.