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The agricultural sector accounts for one quarter of GDP, two-thirds of exports, and half of the labor force. Coffee, sugar, and bananas are the main exports. Manufacturing and construction account for one-fifth of GDP. The signing of the peace accords ended the decades-long Civil War, removing a major obstacle to foreign investment. In 1998, Hurricane Mitch caused relatively little damage to Guatemala compared to neighboring countries, especially Honduras. Remaining challenges include beefing up government revenues, negotiating further assistance from international donors, and increasing the efficiency and openness of both government and private financial operations. In 2005, despite massive street protests, Guatemala's congress ratified the Dominican Republic - Central American Free Trade Agreement (DR-CAFTA) between several Central American nations and the U.S.. However, owing to the extensive damage and economic impacts caused by Hurricane Stan in October 2005, the government is in period of stand-by analysis and acceptance as it contemplates how it will be possible to implement the mechanisms and stipulations of the DR-CAFTA by the starting date in February of 2006. |
Guatemala Information: Inside
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