Guatemala expects its economy to grow by 5% in 2021

Guatemala City, August 30 (EFE). – The Guatemalan government confirmed on Monday that it expects 5% growth for its economy in 2021, especially with the search for new markets and the creation of opportunities for small and medium-sized businesses.

Economy Minister, Antonio Maalouf, noted at a press conference that despite the COVID-19 pandemic that has been recorded in Guatemala since 2020 and which has imposed certain restrictions, the country’s economic revitalization is “on the right track.”

The GDP growth forecast for 2021 is up to 5%, according to the Bank of Guatemala (Central), while it is 3.6% for the World Bank.

In the same way, the International Monetary Fund’s forecast for Guatemala stands at 4.5% and puts it at 3.6% by the Central American Bank for Economic Integration, the official explained.

Maalouf stressed that “economic revitalization is a reality,” because the economic activity confidence index rose from 36.4% in June to 70.36% in July 2021.

He pointed out that the goal of attracting foreign direct investment remains $1,200 million for this year. He explained that in the first seven months of 2021, it reached $700 million.

The official stressed that measures promoted by President Alejandro Giamatti’s government, such as the search for new markets, “reinforced a positive outlook for Guatemala’s economic growth.”

Main business partners

On her part, Deputy Minister of Integration and Foreign Trade, Edith de Molina, explained at the same conference that exports have grown significantly as a result of the eight Free Trade Agreements (FTA) and the four Partial Scope Agreements (AAP) that have different regions and countries.

The official emphasized that Central America has become Guatemala’s main trading partner, bypassing the United States, which was historically the country’s top export destination.

According to De Molina, 30.9% of all exports in 2021 were destined for Central American countries, while 30.8% were for the United States; In the European Union, 8.8%, and Mexico 4%, among other countries.

Guatemala’s economy grew 3.5% in 2019, but due to the pandemic, it shrank by 2% in 2020. EFE