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. 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 of 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.
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.
Read more about this topic: Subdivisions Of Guatemala
Famous quotes containing the word economy:
“The counting-room maxims liberally expounded are laws of the Universe. The merchant’s economy is a coarse symbol of the soul’s economy. It is, to spend for power, and not for pleasure.”
—Ralph Waldo Emerson (1803–1882)
“Unaware of the absurdity of it, we introduce our own petty household rules into the economy of the universe for which the life of generations, peoples, of entire planets, has no importance in relation to the general development.”
—Alexander Herzen (1812–1870)
“The basis of political economy is non-interference. The only safe rule is found in the self-adjusting meter of demand and supply. Do not legislate. Meddle, and you snap the sinews with your sumptuary laws.”
—Ralph Waldo Emerson (1803–1882)