Guatemala is the largest economy in Central America in terms of population (estimated at 17 million in 2021) and economic activity (gross domestic product -GDP- of US$ 95 billion in 2022). The country has experienced stable growth (3.5 percent on average in 2010-19), supported by prudent fiscal and monetary management and an open economy.

The country had one of the smallest economic declines (-1.8 percent) in the Latin America and Caribbean (LAC) region in 2020 during the COVID-19 pandemic.

What are the development challenges in Guatemala?

Guatemala’s economic stability has not translated into robust poverty reduction: the country’s poverty and inequality rates are among the highest in LAC, with a large and underserved population, mostly rural and indigenous and employed in the informal sector. Poverty is estimated at 55.2 percent of the population in 2023.

Source: World Bank 2023