structural:expansion
Economy

Guatemala is the largest economy in Central America, with an estimated 2024 GDP (PPP) per capita of US$10,998. However, Guatemala faces many social problems and is one of the poorest countries in Latin America. The income distribution is highly unequal with more than half of the population below the national poverty line and just over 400,000 (3.2%) unemployed. The CIA World Fact Book considers 54.0% of the population of Guatemala to be living in poverty in 2009.

In 2010, the Guatemalan economy grew by 3%, recovering gradually from the 2009 crisis, as a result of the falling demands from the United States and other Central American markets and the slowdown in foreign investment in the middle of the global recession.

Remittances from Guatemalans living in United States now constitute the largest single source of foreign income (two-thirds of exports and one tenth of GDP).

Some of Guatemala's main exports are fruits, vegetables, flowers, handicrafts, cloths and others. It is a leading exporter of cardamom and coffee.

In the face of a rising demand for biofuels, the country is growing and exporting an increasing amount of raw materials for biofuel production, especially sugar cane and palm oil. Critics say that this development leads to higher prices for staple foods like corn, a major ingredient in the Guatemalan diet. As a consequence of the subsidization of US American corn, Guatemala imports nearly half of its corn from the United States that is using 40 percent of its crop harvest for biofuel production. In 2014, the government was considering ways to legalize poppy and marijuana production, hoping to tax production and use tax revenues to fund drug prevention programs and other social projects.

Gross Domestic Product (GDP) in purchasing power parity (PPP) in 2010 was estimated at US$70.15 billion. The service sector is the largest component of GDP at 63%, followed by the industry sector at 23.8% and the agriculture sector at 13.2% (2010 est.). Mines produce gold, silver, zinc, cobalt and nickel. The agricultural sector accounts for about two-fifths of exports, and half of the labor force. Organic coffee, sugar, textiles, fresh vegetables, and bananas are the country's main exports. Inflation was 3.9% in 2010.

The 1996 peace accords that ended the decades-long civil war removed a major obstacle to foreign investment. Tourism has become an increasing source of revenue for Guatemala thanks to the new foreign investment.

In March 2006, Guatemala's congress ratified the Dominican Republic–Central America Free Trade Agreement (DR-CAFTA) between several Central American nations and the US. Guatemala also has free trade agreements with Taiwan and Colombia. Guatemala was ranked 122nd in the Global Innovation Index in 2023.