Political Environment Favors Business Confidence

The electoral triumph of Alejandro Giammattei and the appointments he is making in his cabinet to assume next January 14, are the main reasons that explain the upturn that has had business confidence since July.

Wednesday, December 4, 2019

In November of this year, the Index of Confidence in Economic Activity reported a 28% growth with respect to the same month in 2018, a performance that reinforces the upward trend that has been registered since July 2019.

The upturn in business expectations coincide with the electoral triumph of Giammattei, who in August 2019 won the second round by a wide margin, concentrating 57.9% of the votes, a proportion higher than the 42.1% held by Sandra Torres, candidate of the National Unity of Hope.

For Emilio Ruiz, an analyst at the Social Studies Research Association (Asíes), "... Everything indicates that the improvement in the perception of the economy by decision-makers is attributed to the political environment, especially the election results last August, which gave the winner to Alejandro Giammattei Falla as president and César Guillermo Castillo Reyes as vice-president."

The business trajectory of the elected vice-president and the appointment of Antonio Malouf, who comes from the export and textile sector, as Minister of Economy, would be other facts that have favored the business climate.

Eduardo Girón, president of the Guatemalan Chamber of Industry (CIG), explained to Prensalibre.com that "... there has been a higher level of confidence since July, which is the product of the election season and the result of the elections."

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