As a result of the economic crisis generated by the pandemic, it is estimated that four out of every five Central American companies were forced to increase their debts in order to sustain their operations.
According to the 2021 Regional Survey on economic reactivation prepared by the Federation of Chambers of Commerce of the Central American Isthmus (Fecamco), the resources obtained through indebtedness, served the companies to pay payroll, face rents and support operations.
Two years after the Law to Strengthen Entrepreneurship came into force in Guatemala, only 40 companies have been registered under the figure of Entrepreneurship Companies, a situation that is partly explained by the lack of incentives provided by the legal framework.
Companies with teams dedicated to innovation, organizational structures that allow for agile decision making and that quickly migrated to teleworking, are those that have best adapted to the new commercial reality.
The pandemic brought about a scenario of changes in the business models, the companies had to apply radical changes in an accelerated way in order to successfully face the challenges represented by the changes in people's habits.
Due to the economic crisis, it is expected that during 2021 the number of business alliances and company sales will increase, especially in the most damaged sectors, such as tourism, hotels, restaurants, entertainment, education and real estate.
The restrictions imposed by the governments of the region due to the covid-19 outbreak, has generated economic losses in most of the productive sectors, including reported business closures and increases in unemployment levels.
With the application of the Health Alert System by covid-19, the Guatemalan economy was reopened, however, the operating guidelines and specific health and safety protocols for various economic activities have not been made official.
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.
The Constitutional Court provisionally suspended the agreement that allowed companies that currently do not have the economic capacity to comply with the payment of the Annual Bonus, to reconcile the amortization of the obligation with the employees.
The agreement of the Ministry of Labor (Mintrab) 250-2020, which was published in the Diario de Centroamérica on July 10, stipulates that in order to postpone the payment of the Bono 14, employers who are not in a position to do so due to the economic crisis resulting from the outbreak of covid-19, could make an application to the Ministry.
In Guatemala, approximately 75% of agricultural enterprises have reported liquidity problems in the context of the crisis generated by covid-19.
A study conducted by the Chamber of Agriculture (Camagro) states that during May, agricultural companies recorded income losses, a situation that can be explained by the quarantine decreed and the social isolation measures.
Making safety and hygiene protocols visible, communicating the cases of covid-19 of its personnel and applying technology in processes to generate trust among its clients are some of the changes that companies must apply in this new business context.
The health emergency and the economic crisis resulting from the covid-19 outbreak changed everything at a global level.
As a result of the crisis generated by the spread of the covid-19, during the following three months companies in Guatemala will be able to defer payments to Social Security, Irtra and Intecap.
The boards of directors of the Guatemalan Social Security Institute, the Workers' Recreation Institute (Irtra) and the Technical Institute for Training and Productivity (Intecap), reported that the payments of employer's contributions for March, April and May were suspended, to be deferred in the second half of the year.
After the first case of covid-19 was reported in the country, the private sector is asking authorities to close the borders partially or completely and to have people entering the nation examined and quarantined if necessary.
Jose Adan Aguerri, president of the Superior Council of Private Enterprise (COSEP), explained that among the measures taken by the companies for this emergency is the creation of a critical department so that the companies that the staff is working in three different places in case any of them is affected, have guns to measure the temperature of customers who come to the company and not allow them to enter with fever.
Identifying critical business needs and setting up plans on how to maintain supplies and operations, as well as establishing communication channels with suppliers to be informed in case of any eventuality, are part of the advice for companies.
The coronavirus has already affected the world economy, and its effects do not seem to stop. With countries in quarantine, financial markets in the black and international trade diminished, the economic outlook is not very encouraging, explains a document from the Guatemalan exporters' union.
One day after the suspension of work in the private sector, authorities reported that all companies complying with the health and safety protocol will be allowed to continue operating.
On the night of March 16, public and private sector work was reportedly suspended, and shopping centers, bars, and discotheques were ordered to close, while public transportation was prohibited, in an effort to contain the spread of covid-19.
From July 7-10, Guatemalan companies focused on mass consumption will meet with Dominican buyers to learn about local market trends.
The event is organized by the Guatemalan Association of Exporters (Agexport) and is aimed at national companies interested in marketing mass consumption products, food service and private brands.
Guatemala's annual exports to the Dominican Republic amount to nearly $120 million, and among the main products marketed are sugar, several types of medicines, palm oil, and personal hygiene items, among others.
In Guatemala, about 2% of the total vehicle fleet units are registered on behalf of 30 companies, including Tropigas, Seguros G&T and Arrendadora Centroamericana.
From the report "Vehicle fleet in Central America, with details of the business fleet", the unit of Trade Intelligence of CentralAmericaData collects the most updated information of the automotive market in Central American countries.
Recognized Brazilian company of backhoe loaders, telescopic, articulated and other types of cranes looking for companies interested in representing the brand and distributing their machinery in Central America and Mexico. The company manufactures and sells telescopic,...