Guatemala: Pandemic's Impact on Industry

It is estimated that in the context of the spread of covid-19 in the country, eight out of ten companies in the industrial sector have reduced their sales and six out of ten have seen their distribution capacity affected.

Wednesday, June 24, 2020

The Chamber of Industry of Guatemala (CIG) conducted a survey to calculate the impact of the current health crisis on the operations of the country's industrial companies. One of the most worrisome results was that most companies have reduced their cash flow.

Check out the "Market and Economic Situation Monitoring System in Central American Countries", developed by CentralAmericaData. reviews that "... In the survey conducted by CIG, 74% of companies report reductions in their cash flow, in some cases under severe conditions. While, in terms of fixed costs, almost half of the companies (47%) have kept them at the same level."

The data explain that only an estimated 11% of formal workers in the industrial sector have been suspended, indicating that companies' expectations are that productive activities will resume in the near future.

Raúl Bouscayrol, secretary of the Board of Directors of the Chamber of Industry, explained that "... Industry hopes that the conditions will be in place to open up the economy and to be able to reintegrate Guatemalans who have lost their jobs. We believe in an orderly reopening, in which, prioritizing the life and health of Guatemalans, companies continue to operate under strict prevention controls."

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Working Hours Reduced for Survival

July 2020

In the context of the economic crisis, it is estimated that companies in Central America have reduced the working hours of employees to an average of 32 hours per week.

As a result of the spread of covid-19 in the countries of the region and the imposition of strict home quarantines, demand for products and services has fallen considerably in most markets.

Nicaragua: Outlook for the Textile Sector

March 2020

According to businessmen in the country's textile sector, as a result of the covid-19 pandemic, a reduction in work orders is expected during the second half of the year.

Representatives of the Nicaraguan Association of the Textile and Clothing Industry (Anitec), predict that with the closure of the stores of several of their clients, sales will be reduced considerably and inventory levels will increase.

Post-Quarantine Consumption Patterns

March 2020

Once the Central American economies begin to return to normal, as the restriction and quarantine measures that have been taken to prevent the spread of the covid-19 are relaxed, household consumption patterns will have changed significantly.

For example, the demand for meals out of home will decrease by about 7% from the levels reported prior to the crisis.

Coronavirus: Proposal of the Industrial Sector

March 2020

In order to mitigate the effects that will derive from the covid-19 crisis, businessmen of the industrial sector of Guatemala ask the government to adjust the measures in aspects such as banking, credit, labor and tax.

Economic activity will be reduced, which we are already experiencing.

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