Following the visit of US Vice President Kamala Harris to Guatemala, the business sector assures that in order to reduce illegal migration from Central America to the US, it is necessary to create a favorable and comfortable environment for local and foreign investment in the countries of the region.
As part of Harris' visit to Guatemala, Agexport prepared a document with proposals that reflect the experience it has accumulated over many years, incorporating Guatemalans and small rural businesses into export chains, generating income that allows them to remain in their territories.
In June 2020, in the context of confinement and the economic crisis, bank credit to the private sector reported an 8% year-on-year increase, but as of July growth began to slow and in September the increase was 5.7%.
According to figures from the Bank of Guatemala, total credit to the private sector began 2020 with a 5.7% year-on-year increase. As of March, when the first cases of covid-19 began to be detected and the government decreed restrictions on mobility, the growth of the credit portfolio accelerated, with a variation of 8% being reported during the third month of the year.
With the strategic development of the Guatemala Country Brand, there are expectations in the business sector to jointly promote investments, exports and tourism.
In its next evaluation, the OECD could lower Guatemala's rating, because in August last year access to bank information with a court order was suspended, which could lead to an increase in the credit price.
Investments in the development of basic road infrastructure could be more efficient in the metropolitan area of Guatemala if more vertical construction is encouraged.
According to experts, promoting vertical commercial and housing construction could reduce investments in transportation infrastructure, because it would make Guatemala's metropolitan area more compact and reduce traffic costs.
Currently, 13,000 homes are built per year, however, to reduce the housing deficit in the country, at least 55,000 units should be built annually.
The Foundation for Development (Fundesa) presented the National Housing Plan, whose main objective is to establish actions focused on the promotion of the housing market in Guatemala.
At the end of 2018, credit granted to the business sector in Guatemala registered a 7% increase over December of the previous year.
Figures from the Superintendence of Banks specify that up to December 2018 the credit portfolio reached $23.064 million and investment in securities $11.324 million, which compared to 2017 is equivalent to 6.8% and 11.3% increases, respectively.
Partly explained by delays in the labor market, between 2017 and 2018 the Central American country moved from 91st to 96th place in the Global Competitiveness Index.
According to the 2017-2018 Global Competitiveness Index report, prepared by the World Economic Forum, the decline recorded by Guatemala this year is mainly due to lags in the areas of health and labor market.
Enade 2018 will be held on October 11 and its central theme will be solving the problem of the housing deficit that is affecting the country.
Enade 2018 is being organized by the Foundation for the Development of Guatemala and will take place on Thursday, October 11 at 2:00 pm, at the Hotel Westin Camino Real Convention Center in Guatemala City.
Now, in addition, an inquiry must be made at the National Committee of Protected Areas to determine if a construction project is within a protected sector.
The headache of getting a construction license in Guatemala will get worse now that a new process has been added to the list. In addition to the 13 agencies that must "rule " whether or not a permission can be granted, Government Agreement 20-2016 by the Ministry of Environment, establishes in Article 13 a new requirement for the construction sector: a consultation with the National Committee on Protected areas (CONAP), said Jorge Benavides, research associate of the Foundation for the Development of Guatemala to Republica.gt.
In 2015, the country received less income from tourism and exports, and also sold less to Central American countries.
Economic Bulletin by the Foundation for the Development of Guatemala (Fundesa):
Inflation ends within the annual target
The Consumer Price Index (CPI) showed a variation of 3.07% in December 2015, 0.12 percentage points higher than in December 2014 (2.95%), while the monthly variation was 0.47%, up 0.54 points from the amount registered in the same month of 2014, which was -0.11%.
In Guatemala it has been proposed that private companies invest in the construction of local public works an amount equivalent to what they should pay in taxes.
The proposal put foward by the Foundation for the Development of Guatemala (Fundesa), to be officially presented in October draws on ideas in Law No. 29230 of Peru, where "... Since its implementation at least 33 projects have been completed .
In the last three years extortion offenses have increased by 20%, affecting competitiveness and reducing the country's ability to attract foreign investment.
The business sector needs the government to accelerate approval of the bills which aim to improve the country's competitiveness and increase development of preventive measures by leading state institutions.
Despite several announcements of new taxes, the government will focus on controlling tax evasion and leave the decision to implement a tax reform to future administrations.
According to authorities at the Ministry of Finance, at the moment there is no consensus for fiscal reform. The priority now will be to pursue and strengthen tax administration in order to meet budget expenditures this year.
The eleventh edition of the ENADE business meeting will be held on October 9th in the capital and will focus on the issue of citizen security.
From a statement made by the Foundation for the Development of Guatemala (FUNDESA):
Guatemala, July 31, 2014 - The Foundation for the Development of Guatemala, FUNDESA , has presented the eleventh edition of the program of the National Meeting of Businessmen, ENADE 2014, which will take place on Thursday, October 9 from 14: 00 hours in the Convention Center of the Hotel Westin Camino Real.