Economy
According to the CIA World Factbook, Guatemala's GDP (PPP) per capita is US$5,200; however, this developing country still faces many social problems and is one of the poorest countries in Latin America. The distribution of income remains 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 56.2% of the population of Guatemala to be living in poverty.
Remittances from Guatemalans who fled to the United States during the civil war now constitute the largest single source of foreign income (two thirds of exports and one tenth of GDP).
In recent years the exporter sector of nontraditional products has grown dynamically representing more than 53% of global exports. Some of the main products for export are fruits, vegetables, flowers, handicrafts, cloths and others.
Gross Domestic Product (GDP) in purchasing power parity (PPP) in 2010 was estimated at $70.15 billion USD. 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.
In March 2006 Guatemala's congress ratified the Dominican Republic – Central American Free Trade Agreement (DR-CAFTA) between several Central American nations and the United States. Guatemala also has free trade agreements with Taiwan and Colombia.
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“Everyone is always in favour of general economy and particular expenditure.”
—Anthony, Sir Eden (1897–1977)
“Quidquid luce fuit tenebris agit: but also the other way around. What we experience in dreams, so long as we experience it frequently, is in the end just as much a part of the total economy of our soul as anything we “really” experience: because of it we are richer or poorer, are sensitive to one need more or less, and are eventually guided a little by our dream-habits in broad daylight and even in the most cheerful moments occupying our waking spirit.”
—Friedrich Nietzsche (1844–1900)
“Even the poor student studies and is taught only political economy, while that economy of living which is synonymous with philosophy is not even sincerely professed in our colleges. The consequence is, that while he is reading Adam Smith, Ricardo, and Say, he runs his father in debt irretrievably.”
—Henry David Thoreau (1817–1862)