Policy advice to enhance the capacity of the public sector and the economy in Guatemala

Guatemala, a member country of the Central American Integration System (SICA), borders Belize and Mexico in the north, and Honduras and El Salvador in the south. Its population is more than 15 million. With plenty of natural resources and biodiversity, Guatemala has great potential for economic growth. However, about 57% of the population lives below the subsistence level, and income inequality is severe among people and between the urban and rural areas. In addition, Guatemala has other serious problems such as corruption and insecurity. The GDP annual growth rate is around 3%, which is relatively low. Agriculture is the major industry, which employs about 50% of the workforce. The agricultural sector produces 13%–14% of the GDP and has a higher growth rate than other sectors. (The rest omitted)