International companies expanding into the Republic of Guatemala will be entering an economy advancing from its traditional strengths of agricultural produce – still crucial for its exports and the most labour-intensive sector – into developing the areas of mining, tourism, hydroelectric power, geothermal development and its digital footprint.
Exports are still based on agricultural production. Guatemala was the world’s largest exporter of nutmeg in 2020, and exports also include bananas, coffee, raw sugar and palm oil. Sugarcane and palm oil are also important for the growing biofuels economy.
Guatemala’s vision of becoming a regional hub and increasing its position as Central America’s strongest economy, is based on proximity to the US and Mexico, with which it shares a border, and having international connectivity with coastlines on the both the Pacific Ocean and Caribbean Sea. There are three ports on the Pacific and two on the Caribbean, with access to sea routes across the Atlantic to Europe and Africa.