Almost three months before the gradual reopening of the Guatemalan economy, it is estimated that eight out of every ten consumers already visit supermarkets, while one out of every four people living in the capital have left for other departments in the country.
With the publication of Ministerial Agreement 187-2020, the Health Alert System for the covid-19 epidemic was made official and the authorities gradually eliminated restrictions on mobility and productive activities.
Arguing that this is misleading advertising, the Directorate of Consumer Services has sanctioned businesses that offer "covid-19 free zones" in the country's capital.
According to Guatemalan authorities, five establishments have already been sanctioned, since these businesses have offered free covid-19 tests or masks that ensure total protection against infection, which is classified as misleading advertising.
Agriculture, Financial and Insurance Activities, and Real Estate Activities, are the sectors that in Guatemala and in the context of the economic reopening, have increased their growth forecasts for 2020.
In June, when mobility restrictions were severe in the country due to the outbreak of covid-19, the Bank of Guatemala (Banguat) predicted that by the end of the year, Agriculture would grow by 1.1%, Financial and insurance activities by 2% and Real estate activities by 2.8%.
In Guatemala, the Giammattei administration decided not to request an extension of the State of Calamity and as of October 1, cinemas, pubs, parks, swimming pools will be reopened and events, fairs and concerts will also be allowed, even if the place is on red alert.
In this scenario of economic crisis, falling tax revenues and the need to finance recovery programs, in Guatemala and Costa Rica it is already proposed to increase current taxes and create new ones.
Guatemalan authorities are already beginning to discuss the fiscal policy they will apply in 2021, when the economy will have to face the effects of the economic crisis generated by the covid-19 outbreak.
After the unemployment rate in the United States fell from 15% to 8% between April and August, it became evident that at the beginning of the crisis the capacity of recovery that the North American country could develop was underestimated and it is expected that this behavior could boost the economic activity in Central America.
During the first half of 2020, when the first cases of covid-19 began to be reported in the region, forecasts noted that the recovery of economic activity would be excessively slow, due to a significant drop in consumption globally.
After the IMAE in Guatemala registered a -11% year-on-year variation in May of this year, during June and July the production contractions were lower, reporting falls of 7% and 5%, in that order.
The Bank of Guatemala reported that in the current economic crisis that emerged due to the spread of covid-19, the activities that have most boosted the drop in production are trade, tourism and transportation.
Variations indicating a certain improvement in the world economy, the reopening of different markets and the recovery of exports are some of the factors that could influence Guatemala's economic activity to decrease less than expected in 2020.
After the Municipality of the head of the province of San Marcos, in Guatemala, decreed several trade restrictions to contain the advance of covid-19, the Constitutional Court decided to suspend them.
The country's highest court in constitutional matters heard the case after the Chamber of Commerce filed an action for protection against the provisions of the municipal corporation of the capital city of San Marcos, which were published on August 11 and are contained in Act 73-2020.
Speeding up the repayment of the tax credit, repealing the Solidarity Tax, approving the Leasing Law, reforming the Banking Law and the Free Zone Law, is part of what Guatemalan businessmen are proposing to reactivate the economy in this context of crisis.
At present, Guatemala is immersed in a severe economic crisis, which was generated by the restrictions to productive activities that were decreed due to the outbreak of covid-19.
After in May this year and in the context of the economic crisis, the IMAE in Guatemala registered a -12% year-on-year variation, during June 2020 the contraction of production was lower, reporting a 9% fall compared to the same month in 2019.
In the current economic crisis resulting from the spread of covid-19, the activities that have most boosted the drop in production are trade, tourism and transport, reported the Bank of Guatemala.
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.
As of July 27, the different production activities can be carried out, as long as the restrictions of the Health Alert System for the covid-19 epidemic are met, which will have a municipal, departmental or regional scope.
After more than four months of restrictions on the mobility of people and some economic activities, President Alejandro Giammattei explained on the night of July 26 that the country will enter a phase of reopening the economy.
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.