Guatemala Slows Down Investment in Infrastructure

In the first quarter $123 million were not executed and the contraction will be for more than $430 million in the second quarter.

Friday, June 12, 2009

The drop in tax collections has forced the Guatemalan government to set in motion a plan of austerity regarding public finances. After having prioritized the operational expenses of administrative salaries, this has fundamentally impacted capital investment.

Jessica Gramajo reports, in an article in Sigloxxi.com, that Álvaro Mayorga, president of the Guatemalan Chamber of Construction (CGC), said, "predicting that the government would have to face more problems due to reductions in tax revenue, the CGC has presented a technical proposal to the Department of Communications, Infrastructure, and Housing. In the proposal, it was recommended to postpone to 2010 the pending infrastructure projects that have not yet been executed in order to maintain job positions."

More on this topic

Government Advertising Cut by 12%

March 2013

The public sector in Costa Rica plans to spend $112 million on advertising and propaganda during the 2013, which is a drop of 12% compared to the previous year's budget.

A report by the Comptroller General of the Republic, has revealed that other items such as foreign travel or entertainment expenses will also be cut in 2013.

Investment Down 17% in El Salvador

May 2010

This was stated by The National Development Foundation during the forum “Analysis of the country’s economic situation and its perspectives”.

Forum participants are discussing the economic situation of the country, after one year of having president Mauricio Funes in charge.

Financial crisis affects investment in Guatemala

October 2008

Foreign companies delay their investements in Guatemala because of financing difficulties.

The global financial crisis is affecting Guatemala, foreign direct investment has diminished due to the unavailability of credit, and several companies are delaying their plans for investing in the country.

Pollo Campero cuts back investment in Guatemala and El Salvador

June 2008

Juan José Gutiérrez, president of Pollo Campero, says current conditions in Guatemala and El Salvador are worrisome.

"We had budgeted 50 million dollars for investment in 2008, with 90 percent of it going to Guatemala and El Salvador," Gutiérrez said. "However, two weeks ago we decided to reduce that by more than half and invest the money in the United States."

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