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 about 20% of GDP and 15% of the labor force. The economy has reentered a slow-growth phase, but is hampered by political uncertainty. In 1988 the economy grew by 3.7%, the third 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 36.9% in 1986 to 15% in 1989.

GDP: $10.8 billion, per capita $1,185; real growth rate 1.3% (1989 est.)

Inflation rate (consumer prices): 15% (1989)

Unemployment rate: 13%, with 30-40% underemployment (1988 est.)

Budget: revenues $771 million; expenditures $957 million, including capital expenditures of $188 million (1988)

Exports: $1.02 billion (f.o.b., 1988); commodities--coffee 38%, bananas 7%, sugar 7%, cardamom 4%; partners--US 29%, El Salvador, FRG, Costa Rica, Italy

Imports: $1.5 billion (c.i.f., 1988); commodities--fuel and petroleum products, machinery, grain, fertilizers, motor vehicles; partners--US 38%, Mexico, FRG, Japan, El Salvador

External debt: $3.0 billion (December 1989 est.)

Industrial production: growth rate 3.5% (1988 est.)

Electricity: 807,000 kW capacity; 2,540 million kWh produced, 280 kWh per capita (1989)

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

Agriculture: accounts for 25% of GDP; most important sector of economy and contributes two-thirds to export earnings; principal crops--sugarcane, corn, bananas, coffee, beans, cardamom; livestock--cattle, sheep, pigs, chickens; food importer

Illicit drugs: illicit producer of opium poppy and cannabis for the international drug trade; the government has engaged in aerial eradication of opium poppy; transit country for cocaine shipments

Aid: US commitments, including Ex-Im (FY70-88), $869 million; Western (non-US) countries, ODA and OOF bilateral commitments (1970-87), $7.7 billion

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

Exchange rates: free market quetzales (Q) per US$1--3.3913 (January 1990), 2.8261 (1989), 2.6196 (1988), 2.500 (1987), 1.875 (1986), 1.000 (1985); note--black-market rate 2.800 (May 1989)

Fiscal year: calendar year

NOTE: The information regarding Guatemala on this page is re-published from the 1990 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Guatemala Economy 1990 information contained here. All suggestions for corrections of any errors about Guatemala Economy 1990 should be addressed to the CIA.