Latin American Economy & Business - August 2013 (ISSN 1741-7430)

By many measures, Guatemala's economy has been performing well, and should continue to do so. Public finances are in good order. The current account is broadly balanced. The export mix is diverse. The banking sector is well capitalised. However, poverty, and attendant problems, are entrenched and widespread. They will remain so while public sector social spending is minimal and overall government revenues and spending stay at around 12%-14% of GDP. Crime/theft and corruption will remain the most problematic factors (by far) for doing business in Guatemala for the foreseeable future. The country's relative size and geographic location mean that the challenges it faces will contribute to instability in its smaller neighbours in Central America.