Guatemala Industry Sectors

Guatemala’s industry sectors, which include food processing, publishing, mining and the manufacture of textiles, clothing, cement, tires, and pharmaceuticals, contribute nearly 25% of the country’s GDP. The country’s manufacturing industry employs nearly 15% of its population. Although the signing of the CAFTA has resulted in increased investments in Guatemala’s industry, the lack of adequate infrastructure and skilled labor have hindered growth. In recent years, the tourism industry has emerged as a major contributor to Guatemala’s GDP.[br]

Guatemala’s industry sectors, which include food processing, publishing, mining and the manufacture of textiles, clothing, cement, tires, and pharmaceuticals, contribute nearly 25% of the country’s GDP. The country’s manufacturing industry employs nearly 15% of its population. Although the signing of the CAFTA has resulted in increased investments in Guatemala’s industry, the lack of adequate infrastructure and skilled labor have hindered growth. In recent years, the tourism industry has emerged as a major contributor to Guatemala’s GDP.[br]

Guatemala Industry Sectors: Guatemala Industries

 

Guatemala’s industrial growth is estimated to have declined by 1.4% in 2009. This compares with a positive industrial growth rate of 3.5% in 2008 and 4.8% in 2007. The decline is largely attributable to the global economic crisis of 2007-09 and the infrastructural constraints faced by Guatemala’s industry.

 

 

Guatemala’s apparel industry remains one of the largest employers and a significant contributor to the country’s exports. Although competition from the Asian markets has had a negative impact on the export demand for Guatemala’s apparel products, the industry is set to expand in view of the cheap labor available in this Central American nation. The United States offers a sizeable market for Guatemala’s apparel exports.

 

The mining and petroleum industries also play an important role in Guatemala’s economy. Guatemala is the sole oil producing nation in Central America and studies have demonstrated the scope for further exploration. Mining of antimony, copper, nickel, iron, and tungsten is carried out in small quantities, but a large amount of Guatemala’s mineral resources still remains unexploited.

 

A large forest base allows Guatemala to have a flourishing furniture industry, which is known for the excellent quality of its wood. Other major industries in Guatemala include sugar, rubber, furniture, metals and chemicals.

 

Guatemala’s service industry contributes nearly 65% of the country’s GDP and comprises of retail, financial services, transportation, communication and tourism. Of all these, tourism is the most profitable sector. Guatemala’s pleasant climate, diverse landscape and its Mayan ruins make it a popular travel destination.[br]

 

Nearly 3% of Guatemala’s population was unemployed in 2008, according to the World Bank estimates. The private sector plays a significant role in Guatemala’s economy and employs a significant proportion of the country’s population.