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What do experts say about the economic situation in Guatemala?

What do experts say about the economic situation in Guatemala?

September 7, 2016
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Guatemala is a country full of qualities, not only geographical but also human and natural, these qualities could be enough for its inhabitants to have a stable economy and a great life with many development opportunities. The reality, however, is very different, there are some situations that have prevented this from happening. This has put the country in the spotlight, and some experts have shared their opinion about the current situation in order to raise awareness about it, and motivate the authorities to do something about it.


So… keep on reading to learn what experts say about the economic situation in Guatemala.


The World Bank

The World Bank gives important data that should be taking into account in order to make a real plan. This institution pinpoints the poverty situation which, by the way, is quite overwhelming. Inequity in areas such as education and land distribution are some of the aspects that affect the index in a negative way.

 

The numbers that give poverty a face

According to The World Bank, 58% of the entire population has an income lower than the extreme poverty limit. This situation is specially recurrent in the north, north-east and south-east areas, and affects primarily indigenous people.

You should read: What poverty is and how does it affect the economy of a country?

 

An outlook of the country’s GDP 

When it comes to the GDP per capita, The World Bank concludes that annual growth is only about 1.7%, this is not only a low index, but is also a proof that poverty reduction is, for now, completely out of the question.


Economic Analysts

Some analysts are immersed in the study of Guatemala’s economic situation, and based on some other factors as well, they share their perspective of the current situation, which is not very optimistic and warns about economic standstill. From a macroeconomic point of view they conclude:

Inflation

This is a matter of concern because it affects directly on the people’s capability to obtain the basic products, this aspect, according to projections is not going to increase in the following years.

Economic activity

Whilst inflation projections give a slight hope, economic activity goes otherwise, it is expected that it won’t have any significant growth. Production is going to stop growing and foreign investment is expected to decrease since Guatemala won’t be a desirable destiny for new projects.


When it comes to imports, economic analysts agree that there won’t be any innovation, the same products will be commercialized and their destiny will be the same. This, sadly, doesn’t change grow projections, since in order to grow it is necessary to innovate.


The experts’ opinion regarding the economic situation in Guatemala is not exactly encouraging, but it can be seen as an opportunity to get better and build a different future.


Source: El Periódico y Poverty Reduction & Equity

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