Industrial Activity Still in the Red Numbers

From January to June in Guatemala, the Industrial Activity Index registered a 2% drop regarding the same period of 2018, which is explained by the drop of the chemical and pharmaceutical industries, and mining.

Thursday, October 10, 2019

According to the Industrial Activity Index (IAIG) developed by Central American Business Intelligence (CABI), 85% of the negative result of the index is related to macroeconomic aspects, that is, influenced by what happens with the country's economy, and the remaining 15% is determined by industry issues.

See “Guatemala: Industrial Activity Begins 2019 Downward

Paulo de León, Director of Intelligence at CABI, explained to Prensalibre.com that "... since the index was established in 2012, between 4 and 6 fairly favorable years were reported with uninterrupted growth when the country was also growing steadily, but from 2017 there was stagnation in the last two years."

Not all industry recorded losses in the first half, as the food and beverage sector reported a 3% growth, and hotels and restaurants 8%.

On the other hand, the clothing and footwear industry was the best performer, reporting a 10% increase. De Leon explained that "... A theory that the clothing and footwear sector grew at that rate was due to issues such as the trade war between the U.S. and China, greater purchasing power of people and the political and economic crisis in Nicaragua.”

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More on this topic

Industry: Forecast for Guatemala

August 2020

After the industrial activity registered in May one of the lowest levels of the last years, it is expected that the sector will close 2020 in negative variations, but more moderate than those reported in the first half of the year.

The Index of Economic Activity of the Chamber of Industry of Guatemala, which is calculated by Central American Business Intelligence (Cabi), states that during May and in the context of the economic crisis resulting from the outbreak of covid-19, fell by about 10% when compared to the same period in 2019.

Guatemala: Industrial Activity Begins 2019 Downward

May 2019

The economic slowdown in the U.S., the main trading partner, partially explains the 6% year-on-year drop in the Industrial Activity Index reported during the first quarter of the year.

According to the Industrial Activity Index (IAIG) compiled by Central American Business Intelligence (CABI), the productivity of the 14 industrial sectors have been affected by the increase in the price of gasoline, the new fall in commodity prices, the stagnation of national investment and smuggling.

Industrial Activity Is Stagnating

February 2019

Lack of legal certainty, lack of investment and excessive bureaucracy are some of the factors influencing industrial activity in Guatemala not to advance in 2018.

The Guatemalan union of the sector reported that the Industrial Activity Index (IAIG) registered a 2% decrease between December 2017 and November 2018, going from 145.67 to 142.70.

Guatemala: Industrial Activity Stagnated in 2017

May 2018

Between December 2016 and the same month in 2017, the Industrial Activity Index registered a contraction of close to 1%, explained in part by the performance of the food and mining sectors.

The Industrial Activity Index prepared by Central American Business Intelligence (CABI), uses historical information from the year 2012 and takes into account 14 industrial sectors. 

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