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.
Although the covid-19 outbreak in Guatemala has increased interest in medical and life insurance, it is expected that because of the economic crisis, group insurance sales will be affected.
Figures revealed by directors of the Guatemalan Association of Insurance Institutions (AGIS), detail that so far the months with the highest incidence of positive cases have been June and July.
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.
Manufacturers and farmers who deliver directly to their homes, Facebook profiles, Instragram, WhatsApp, neighbors or acquaintances who distribute food or household products, are some of the new sales channels that have emerged in this new business context.
The new business normality that emerged in an accelerated manner in Central America, due to the outbreak of covid-19 and the imposition of social distancing measures, favored the conditions for new marketing channels to be born in the different markets.
After the Ministry of Communications announced the new protocols for passenger transport companies to operate, the transporters disagree with the sanctions that will be imposed on them when they fail to comply with the rules.
Ministerial Agreement 645-2020 was published, a document that details the circulation protocol that must be complied with by extra-urban passenger transport units, for the application of the Health Alert System for the covid-19 epidemic.
The abrupt change in consumer habits forced companies to digitalize their operations and sales, but the challenges do not stop there, as companies will have to implement effective logistics systems to reach their customers.
Before the process of reopening the economy, the garment and textile export sector operated with 15 thousand workers, but with the elimination of some restrictions, the activity of the companies increased and now employs 45 thousand people.
Since office construction is still active and could enter a phase of over-supply, combined with the strong increase in telecommuting, the market could face a contraction in the coming months.
Due to the drop in economic activity generated by the covid-19 crisis, a 7.9% reduction in domestic electricity consumption was reported in the region between March and June 2020, when compared to the levels of the same period in 2019.
Regarding the reduction of internal consumption of electricity in the countries from March to June 2020, we have that Guatemala had a drop in its demand of 239 GWh (Gigawatt hours), which corresponds to 6.6% compared to the consumption of electricity in 2019, in the case of El Salvador with a reduction of 335 GWh, equivalent to 15.4%, says a report from the Regional Operating Agency (EOR).
Although the Guatemalan economy has almost stagnated in recent months, during the first half of the year the number of loans granted for the purchase of residences grew 3%, and by 2021 it is predicted that sales could be similar to those of 2019.
The social distancing measures and the prohibition of several economic activities decreed by the authorities due to the covid-19 outbreak, caused considerable negative effects to the Guatemalan real estate market.
After more than four months of closure due to the covid-19 outbreak, shopping malls in Guatemala received the endorsement to start serving their customers and as of July 31 have reactivated their operations.
With the publication of Ministerial Agreement 187-2020, the Health Alert System for the covid-19 epidemic was made official, which includes four alerts: red or maximum, orange or high, yellow or moderate, and green (new normal).
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.
Faced with the sudden change that the new normal generated in companies, employees are challenged to increase their skills to work remotely, adapt to more flexible contracts and refine their technological skills and cognitive qualities.
Telecommuting has become an everyday occurrence among companies in the region, which have had to adjust to the restrictions imposed by governments due to the outbreak of covid-19.
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 new context, disinfection service companies are offering innovative solutions to meet new customer requirements, such as the use of ultraviolet light cleaning systems.
Cleaning articles and services are some of the issues that have gained ground in the digital environment in this context of health crisis, which derives from the outbreak of covid-19 in the region.
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