Foreign Companies Dont See Guatemala As a Good Place

Amcham said that the lack of a clear strategy to attract foreign investment and uncertainty over key issues such as the emergent employment law are causing the country's business climate to deteriorate.

Monday, June 27, 2016

The views of the main chamber of foreign companies in the country do not coincide with those of Banco de Guatemala, which anticipates growth of 8.5% in foreign investment flows. In the view of Juan Pablo Carrasco, vice president of the Guatemalan Chamber of Commerce (AmCham), "... 'these figures are not realistic." What has happened specifically in the mining sector, with the suspension of seven projects in a week, has affected the investment climate among foreign companies. 

Carrasco told that "... 'Since last year we have been warning there would be a decrease resulting from a deterioration in the investment climate. And there have been negative signals from the three branches of government. The Executive and Legislative departments have not promoted nor passed legislation for investment and employment, and the Judiciary has handed out expropriatory sentences. This has caused almost a boycott position on the part of FDI '. "

"... Arturo Soto, president of the Mexican Chamber of Investment and Trade (Camex), believes it is clear that FDI has stalled because they have not taken steps to attract more investment, something that their neighbors have been doing, for example, Oaxaca and Chiapas, which were recently declared areas of economic interest. "

More on this topic

Guatemala: FDI falls 5%

October 2018

During the first semester of the year the country acquired $546 million in Foreign Direct Investment flows, 4.6% less than the $573 million reported in the same period of 2017.

According to the figures of the Banco de Guatemala of the total Foreign Direct Investment (FDI) from January to June of this year, $183 million went to the Trade sector, $97 million to the Manufacturing Industry, $89 million to Banks and insurance companies, $58 million to Telecommunications and $52 million to Electricity.

Guatemala: Perspectives for Foreign Investment

October 2017

Recent corruption cases and the suspension of mining licenses could affect the foreign investment figures projected by the Bank of Guatemala for the close of 2017.

The latest data from the Bank of Guatemala indicates that in the first semester foreign direct investment totaled $579 million, of which $144 million went to the manufacturing industry. The increase in the total FDI flow registered between January and June was only 2.3% compared to the same period in 2016, and by the end of the year the Banguat plans to reach $1.3 billion.

Honduras Flirts With Guatemalan Companies

February 2016

The Honduran investment promotion office has sent a letter of invitation to entrepreneurs who lost their tax exemptions in Guatemala.

Honduras is looking to attract investment from Guatemala citing two advantages over its competitors: tax incentives on exports and port infrastructure in the Caribbean.

Reduced Investment in El Salvador

May 2013

Lack of policies for attracting investment and the climate of insecurity both legally and for citizens is scaring away local and foreign investors.

In terms of Foreign Direct Investment (FDI), this barely grew, by $22 million, during 2012, closing with $463 million while the previous year it had been $441 million.