In 2018, sales abroad totaled $11 billion, recording a minimum 0.3% increase compared to 2017, a performance attributed to international market factors.
After registering a 5% increase between 2016 and 2017, in 2018 exports did not report significant year-on-year increases, because international prices of some agricultural products are not going through their best.
Up to October, foreign sales totaled $8.978 million, almost 3% less than in the first ten months of 2017, and the main reason for the decline is the fall in international prices of some agricultural products.
The Banco de Guatemala reported that the most important products according to their participation in the total value of exports were: Clothing with US$1,209.4 million (13.5%), Banana with US$678.1 million (7.6%), Coffee with US$647.1 million (7.2%), Sugar with US$545.4 million (6.1%) and Fats and edible oils with $457.9 million (5.1%).These products represented 39.5% of total exports.
Although in the first nine months of the year foreign sales fell almost 3% compared to the same period in 2017, the Banco de Guatemala forecasts that the trend will be reversed by the end of 2018.
The fall in the international prices of sugar, coffee and natural rubber, largely explain the decline in income from sales abroad. According to figures from the Banco de Guatemala (Banguat), up to September, foreign sales totaled $8.147 million, 2.6% less than the figure recorded in the first nine months of last year.
During the first eight months of the year, the Central American country generated $600 million in sales to Eurozone countries, 4% more than reported in the same period of 2017.
According to figures from the Bank of Guatemala, the Netherlands is the destination of Guatemalan exports that showed the greatest dynamism between January and August, with sales of $235 million, an increase of 14% over what was reported in 2017.
In line with the decline reported since the beginning of the year, up to July, sales abroad totaled $6.455 billion, 3% less than what was recorded in the first seven months of 2017.
According to Óscar Monterroso Sazo, general manager of the Bank of Guatemala (Banguat), "... a fall in international prices of the four main agricultural products which are coffee, sugar, banana and rubber, is the reason for the drop in sales abroad."
After decreases were reported in 2015 and 2016, last year the country raised $11 billion in sales abroad, 5% more than in 2016.
In 2017, sales abroad improved significantly compared to the previous year, rising from $10.449 billion in 2016 to $11 billion in 2017, which represents an increase of 5.3%.
The president of the Bank of Guatemala (Banguat), Sergio Recinos, explained to Elperiodico.com.gt that "... the recovery is associated with improvements in products such as clothing, cardamom, bananas, coffee, fats and oils, iron and oils, rubber, cereals, paper manufactures, petrol and aluminum, among other things."
Although the export sector continues to denounce the loss of competitiveness because of appreciation of the quetzal against the dollar, the Central Bank insists that the exchange rate will remain dependent on market factors.
A year ago the complaint was the same.Exporters asked the Central Bank for a review of the exchange scheme to induce a devaluation that would allow them to recover some of the competitiveness lost abroad because of the exchange rate.The situation today has not changed, and exporting companies have asked for the Ministry of Agriculture to intervene in this matter.
Although it has reduced its dependence on the USA as an export destination, Guatemala could find new opportunities with the expected shift in the trade policy between the US and Mexico.
Analysts recognize the value of finding other markets but also warn about the importance of continuing to watch the events in light of the statements made by President-elect Trump during his campaign regarding a possible revision of the Free Trade Agreement (FTA) with Mexico.
Foreign sales recorded a slight decline of 0.5% at the end of 2015 compared to the same period in 2014, there were no major changes in the types of products exported and the main target markets.
Organizations such as the Inter-American Development Bank had already announced a "negative trade spiral" at the end of 2015 and part of 2016 in Latin America.
In the first five months of the year exports totaled $28 million, 53% more than in the same period last year, and 60% were destined for Central America.
Data from the Bank of Guatemala indicates that in May glass and glassware exports generated $28 million, 53% more than the $18 million generated in the same period in 2014.
Eduardo Ordonez, spokesperson for Grupo Vidriero Centroamericano Vical said in an article on Dca.gob.gt that "...With an annual production of 400 metric tons of glass, equivalent to 2 million containers, the glass industry exports 60 percent of its production to Central America and the Caribbean. "
Local producers denounce the practice of triangulation, smuggling, under-invoicing and reporting new footwear coming from China as used.
In 2012 footwear exports generated $35 million, though at the end of 2014 this figure recorded a reduction of $4.2 million. The opposite has occured with imports, which between 2012 and 2013 amounted to $143 million and in 2014 increased by $7 million, according to figures from the Bank of Guatemala (Banguat).
The ports handled 3.5 million metric tonnes more than in 2013, due to an increase of 213% in the cargos of lead, nickel, zinc, iron and other minerals.
In 2014, the movement of cargo from the port of Quetzal recorded a growth rate of 11%, Las Boyas de San José, 24%, Puerto Barrios terminal reported no change and the Port of Santo Tomas de Castilla had the strongest growth, of 36%.
The main products exported were articles of clothing, accounting for 11% of the total, followed by sugar, with 9%, bananas, with 6%, coffee with another 6%, and precious stones and metals, with 3%.
From a statement issued by the Guatemalan Exporters Association (-AGEXPORT-):
The Bank of Guatemala has confirmed growth in exports in 2014 of more than 8.1% more than that estimated by AGEXPORT in a report relased in the second week of December last year. This growth comes from overseas sales having recorded $10.833 billion in foreign exchange.
Holland was the country that bought the most goods sold by Guatemala to the European Union between January and September, which totaled $684.76 million, 17% more than in the same period in 2013.
The goods most exported to the European Union (EU) are textiles, nickel, vegetables and coffee, with the main destinations being the Netherlands which recorded purchases of $219 million, followed by Belgium with $86 million, Germany with $79.5 million and Spain with $78.6 in the first nine months of the year.
Processed foods, fuels, pharmaceuticals and chemicals are some of the nontraditional exports which grew by 7% in the first nine months of the year compared with the same period in 2013.
From a statement issued by the Guatemalan Exporters Association (Agexport):
In September 2014, Guatemala's total exports reported an increase of 7% compared to the same date in 2013.