Guatemala Has Been Losing Out On Investments

The value of the investments that the country has lost in the last five years, has been estimated at $1 billion, due to factors such as high production costs and poor infrastructure, which is having a deteriorating effect on competitiveness.

Tuesday, October 31, 2017

A study prepared by the CABI at the request of the union of exporting companies concludes that both Guatemalan and foreign companies have opted for neighboring markets such as Nicaragua, Honduras and Mexico in which to make their investments, instead of Guatemala. Production costs, the minimum wage, higher than in other countries of the region, and the deteriorated road infrastructure are some of the factors that have impacted the loss of the country's competitiveness with respect to similar markets in the region.

The director of the CABI, Paulo de León, explained to Elperiodico.com.gt that "... estimating exact data to represent the loss of investment is complicated, but derived from information from the Ministry of Agriculture, Livestock and Rural Development (Sagarpa) of Mexico, $400 million has been invested by Guatemalan companies in the agro-industrial sector in the last five years, in that country, and when adding other industries and countries that have received capital from Guatemalans, the figure could reach $1 billion."

"... added to this is information from employers in the Free Zones that indicate which companies have opted to settle in other countries."

Regarding the decision of companies to invest in neighboring countries, "...The president of Agexport, Antonio Malouf, said that he can not give the names of the companies consulted, but that they are Guatemalan companies who already have an investment and that the latter preferred to do so in another country. "If we, Guatemalans ourselves, are investing outside of our country, what can we expect from foreign investment?"

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