In the first quarter $123 million were not executed and the contraction will be for more than $430 million in the second quarter.
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.
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.
Carolina Castellanos, director of the Guatemalan American Chamber of Commerce, points out that the uncertainty in the markets has undermined investor confidence. "This year we have not seen any relevant interest for investing in the country, other than a Call Center, which has not been confirmed yet".
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."