Guatemala profile

Demography and Health

Guatemala’s population stands at about 18.4 million in 2024, placing it among the more populous countries in the region. The country exhibits a young demographic profile, with a birth rate of 20.8 per 1,000 people in 2023 and a crude death rate of 4.83 per 1,000, contributing to steady natural population growth. Life expectancy at birth is approximately 72.6 years as of 2023, reflecting progress in public health but also indicating ongoing challenges in extending healthy longevity for all segments of society. Under-5 mortality is relatively high at 21.4 per 1,000 live births (2023), signaling gaps in maternal and child health services, nutrition, and access to care. Poverty remains pervasive, with about 56% of the population living under national poverty lines in 2023, and 12.6% of the population undernourished in 2022, underscoring the multidimensional nature of health determinants in the country. The health system shows constrained capacity: hospital beds are 0.44 per 1,000 people (2021), and current health expenditure accounts for 7.44% of GDP (2022), with the per-capita health expenditure in purchasing power parity terms around 255 international US$ (2022). This combination of a large and growing population, limited health infrastructure, and high poverty underscores the ongoing need for targeted investment in health access, nutrition, and social protection. Net migration in 2024 was negative, at about −7,725 people, suggesting that out-migration remains a material demographic force that can affect labor supply, remittances, and local health and education ecosystems. The Internet penetration of 56.1% (2023) signals potential for digital health tools and information networks to complement traditional care channels, even as investment is needed to expand connectivity in underserved areas. Overall, Guatemala faces the dual task of sustaining health gains while expanding access and affordability for a large and diverse population.

Economy

Guatemala’s economy shows mixed indicators of development and external integration. GDP per capita is about 6,150 current US$, with a GDP per capita at PPP around 14,369 international dollars (2024), signaling a lower-middle-income income level with substantial room for productivity gains. The country’s export orientation is modest, with exports of goods and services totaling 15.9% of GDP in 2024, while imports reach 31.5% of GDP in the same year, indicating a reliance on foreign inputs and intermediate goods that can cushion or amplify external shocks. Inflation sits at 2.87% in 2024, suggesting price stability is being maintained within a low-to-moderate range; unemployment is reported at 2.34% in 2023, a figure that, if accurate, points to tight labor markets in some segments, though informal employment and underemployment are common realities that the headline rate may not fully capture. Investment trends are modest but positive: foreign direct investment net inflows are around 1.61% of GDP in 2024, and the current account balance stands at 2.94% of GDP in 2024, implying a degree of external financing stability. The economy benefits from a notable share of renewable energy consumption (62.1% of total final energy consumption in 2021), which can help insulate the economy from fossil fuel price volatility and support longer-term sustainability. On the innovation front, research and development expenditure is about 0.0586% of GDP (2021), with patent applications by residents totaling 9 (2021), and high-technology exports valued at roughly 377 million USD (2023). These figures collectively point to a low-to-moderate national innovation footprint and an economy with potential but limited domestic R&D and advanced manufacturing capacity. Guatemala also allocates around 7.44% of GDP to current health expenditures, while general government health expenditure per capita in PPP terms is about 255 international US$ (2022), highlighting the priority given to social spending but also the constraints from limited fiscal space. The country’s poverty headcount remains high (56% in 2023), underscoring the need for inclusive growth strategies that translate macro stability into improved living standards for a broad swath of society.

Trade and Investment

Trade dynamics in Guatemala show a modest export orientation and a reliance on imports for consumption and production. Exports of goods and services are 15.9% of GDP (2024), while imports comprise 31.5% of GDP (2024), reflecting a tradable sector that depends on external inputs and markets. The country attracts foreign capital at a modest pace, with net FDI inflows at 1.61% of GDP (2024), suggesting limited but ongoing confidence from international investors. The current account balance stands at 2.94% of GDP (2024), indicating a modest external imbalance that is either financed by FDI or prudent reserve management, rather than a persistent deficit. The logistics environment for trade, as measured by the Logistics Performance Index (quality of trade and transport-related infrastructure) at 2.4 (out of 5) in 2022, implies moderate efficiency in logistics but signals room for improvement in customs, transport networks, and service quality to reduce costs and delivery times. Guatemala’s high-technology export activity is relatively small, at about 376.98 million USD in 2023, with a resident patent activity of just 9 applications (2021), underscoring the limited scale of advanced manufacturing and domestic innovation in trade structures. The combination of a relatively open economy and moderate market size means policy emphasis on improving trade facilitation, expanding export diversification (beyond low-value products), and strengthening intellectual property and innovation ecosystems could yield significant gains in competitiveness and resilience.

Governance and Institutions

Institutional quality in Guatemala faces notable challenges across several dimensions. Political stability and absence of violence/terrorism score −0.244 (2023), with a rank of 121, indicating vulnerability to political shocks and social tensions. Regulatory quality is assessed at −0.29 (2023; rank 113), and the rule of law at −1.08 (2023; rank 169), reflecting weaknesses in legal frameworks, contract enforcement, and governance predictability. Control of corruption sits at −1.12 (2023; rank 168), and government effectiveness at −0.897 (2023; rank 161), suggesting persistent governance deficits that can hamper business climate, public service delivery, and long-run development planning. The net effect of these indicators is a challenging environment for sustained investment and social policy implementation, particularly in areas requiring credible institutions, transparency, and upholding rights. The high poverty rate (56% in 2023) also signals that governance reforms need to be paired with social and economic policies that translate into tangible improvements in living standards for the majority. Despite these challenges, Guatemala maintains a functioning state apparatus with defined macroeconomic policy and engagement in international frameworks, offering a pathway for governance reforms if accompanied by credible anti-corruption measures, strengthened rule of law, and inclusive policy design.

Infrastructure and Technology

Guatemala’s infrastructure and technology landscape shows both connectivity and gaps. The internet is used by about 56.1% of the population in 2023, indicating a solid base for digital inclusion but leaving a sizable portion of the population without online access. The country scores modestly on a logistics-related infrastructure indicator, with a Logistics Performance Index of 2.4 (2022) on a 1-to-5 scale, suggesting that trade and transport networks function but face efficiency bottlenecks. Innovation inputs are limited: research and development expenditure is about 0.0586% of GDP (2021), and resident patent applications are 9 (2021), pointing to a nascent domestic innovation ecosystem with ample room to scale up through public investment and private sector incentives. High-technology exports are relatively small in value (approximately 377 million USD in 2023), reinforcing the view that Guatemala’s advanced manufacturing capabilities are underdeveloped. On energy and resilience, renewable energy accounts for 62.1% of total final energy consumption (2021), a strong feature that lowers exposure to fossil fuel volatility and supports sustainability goals. Overall, infrastructure and technology capacities provide a platform for growth but require targeted investments to expand digital inclusion, reduce logistics costs, and boost research and development.

Environment and Sustainability

Guatemala shows both notable progress and ongoing environmental pressures. Renewable energy constitutes a dominant share of energy consumption (62.1% of total final energy consumption in 2021), contributing to lower greenhouse gas intensity in energy use and offering opportunities to strengthen energy security and reduce import dependence. Total greenhouse gas emissions excluding LULUCF per capita are about 2.43 t CO2e per person (2023), illustrating a moderate per-capita emissions profile relative to many peers in the region. The level of water stress, measured as freshwater withdrawal as a proportion of available freshwater resources, is 5.74% (2021), suggesting relatively moderate withdrawal levels given Guatemala’s hydrological resources, although local water stress can still be acute in certain basins or seasons. The country faces a significant challenge in food security and nutrition, as reflected by a 12.6% undernourishment rate (2022) and a poverty rate of 56% (2023), factors that intersect with environmental vulnerability (including drought risk and climate shocks) and reinforce the need for sustainable agricultural practices and climate adaptation. Taken together, Guatemala’s environmental indicators indicate a foundation for a greener energy transition and prudent resource management, but also highlight social vulnerability that must be addressed alongside environmental goals to achieve broad-based sustainable development.