Guatemala neighbors with Mexico on the north, is bounded on the west by the Pacific Ocean, east by the Caribbean and Atlantic and is bordered by El Salvador and Honduras on the south.
The industrial structure of Guatemala has transformed from agriculture to industry and then towards service. The Agricultural output accounts for 13.5% of GDP which are dominated by coffee, sugar, cardamom and bananas. In recent years, the export of vegetables and tropical fruits has increased. The industrial output accounts for 24.2% 18,798,985of GDP. Among them, manufacturing sector accounts for 17.9%. The industry is mainly composed of textile garment processing, food and beverage, chemical, medical and pharmaceutical products.
The output of service sector accounts for 62.3% of GDP, of which, 11.7% is commerce (wholesale and retail). Transportation and warehousing are 10.8%, and finance and insurance and other service sectors are 4.9% and 16% respectively.
The strategy for the future will focus on export expansion, product diversification and decentralized market.
(1) Decentralized market: Seeking and expanding markets is the key for export growth. The industry urges the Congress to pass the free trade agreements in various negotiations in order to enhance the expansion. Based on convenient transportation and logistics, the priority of market expansion and development is given to Mexico, Colombia, Chile, Peru, Dominican Republic, Trinidad and Tobago.
(2) Product diversification: The traditional industries of Guatemala are coffee, sugar, cardamom and bananas. The performance of export of non-traditional products is excellent with annual growth rate of about 17%, including mini vegetables and tropical fruits, ornamental plants and manufacturing (processed food, footwear, chemicals, cosmetics, sanitary products, pharmaceuticals, wood furniture products, leather, handicrafts, building materials, floor tiles, packaging materials, etc.).
(3) Assisting the industry in participating in domestic and international exhibitions in order to strengthen export.
(4) Enhancing enterprises recruitment and attracting foreign investment: organizing international forums in order to attract foreign investment and create jobs.