Overview: The economy is based on agriculture, which accounts for 25% of GDP, employs about 60% of the labor force, and supplies two-thirds of exports. Industry accounts for 15% of the labor force and about 20% of GDP. The economy has reentered a slow-growth phase, but is hampered by political uncertainty. In 1988 the economy grew by 4.0%, the second consecutive year of mild growth. Government economic reforms introduced since 1986 have stabilized exchange rates and have helped to stem inflationary pressures. The inflation rate has dropped from 26% in 1986 to 12% in 1988.

GDP: $10.0 billion, per capita $1,100; real growth rate 4.0% (1988)

Inflation rate (consumer prices): 12% (1988)

Unemployment rate: 12-15%, with 30-40% underemployment (1988 est.)

Budget: revenues $1.1 billion; expenditures $1.35 billion, including capital expenditures of $195 million (1989 est.)

Exports: $1.1 billion (f.o.b., 1988); @m5commodities--coffee 40%, cotton 7%, cardoman 5%, bananas 4%; @m5partners--US 41%, El Salvador, FRG, Costa Rica, Italy

Imports: $1.5 billion (c.i.f., 1988); @m5commodities--fuel and petroleum products, machinery, grain, fertilizers, motor vehicles; @m5partners--US 39%, Mexico, Japan, FRG, El Salvador

External debt: $3.2 billion (December 1988)

Industrial production: growth rate 3.0% (1987 est.)

Electricity: 803,000 kW capacity; 2,543 million kWh produced, 290 kWh per capita (1988)

Industries: sugar, textiles and clothing, furniture, chemicals, petroleum, metals, rubber, tourism

Agriculture: coffee, bananas, sugarcane, cotton, cardamom; an illegal producer of opium poppy and cannabis for the international drug trade

Aid: US commitments, including Ex-Im (FY70-88), $880 million; Western (non-US) countries, ODA and OOF bilateral commitments (1970-86), $7.2 billion

Currency: quetzal (plural--quetzales); 1 quetzal (Q) = 100 centavos

Exchange rates: free market quetzales (Q) per US$1--2.700 (May 1989), 2.705 (1988), 2.500 (1987), 1.875 (1986), 1.000 (1985); black-market rate 2.800 (May 1989)

Fiscal year: calendar year

NOTE: The information regarding Guatemala on this page is re-published from the 1989 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Guatemala Economy 1989 information contained here. All suggestions for corrections of any errors about Guatemala Economy 1989 should be addressed to the CIA.