Our letter of introduction to foreign investment

In the midst of a politically polarized world and with global economic uncertainty, the quality that best describes Guatemala is stability.

While Latin America is decidedly turning to the left, with governments that have repealed hourly employment or development zones or that are threatening to eliminate oil production or the mining industry, to nationalize electric energy or increase taxes to businesses, Guatemala represents an oasis for investment. It is the only country in the region to have held three consecutive right-wing governments democratically elected that make respect for private property and free Enterprise a priority, promoting economic development and moderate fiscal policies. If the polls are right again, in a few months the fourth government

Rodolfo Mendoza Chief Executive Officer

of the same line will be elected.

This political continuity joins the recognized macroeconomic stability that the country enjoys. The Guatemalan economy is the largest in Central America, representing 35% of the region, with stable and sustained growth levels, resilient through years of international crises. The exchange rate is the most stable in Latin America (the Quetzal has not registered any variation in the last twenty years), allowing for adequate financial projections without worrying about exchange rate risks. It enjoys the largest international reserves in the Central American region, with a balance of over US$20 billion and one of the lowest debts in relation to GDP in Latin America. Recently, the main risk rating organizations have upgraded the country’s rating to levels that had not been reached in 15 years.

Along with the most competitive electric energy costs in the region, a demographic bonus that ensures a young workforce in the next decades and an important offer of incentives for the growth of investments in the country, Guatemala projects itself as a great destination due to its business environment and unparalleled geographic location.

Its geographic location is strategic. With direct access to both oceans, separated by merely 400 kilometers between them, it has the second largest maritime cargo operation in Central America, just behind Panama. It is the gateway to the largest market in Latin America, Mexico, and provides unparalleled access to the Central American market. It has signed multiple trade agreements with some of the most important markets in the world, including the US, allowing the entry of Guatemalan products with lower tariff and non-tariff restrictions.

In recent years the country has prioritized the attraction of foreign investment and the generation of opportunities through a public-private agreement, approving policies and facilitating administrative processes to establish new businesses, seeking to promote the national economy. All of this has led to exceed investment goals in recent years, creating an appropriate environment that seeks proximity and stability in a volatile and uncertain world.