Guatemala 2

Guatemala

Guatemala 3
Guatemalan President Jimmy Morales

Extensive and exhaustive details are provided about all phases of Guatemalan history elsewhere.

Geography:

Guatemala is mountainous with small patches of desert and sand dunes, all hilly valleys, except for the south coast and the vast northern lowlands of Petén department. Two mountain chains enter Guatemala from west to east, dividing Guatemala into three major regions: the highlands, where the mountains are located; the Pacific coast, south of the mountains and the Petén region, north of the mountains.

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Topographic Map of Guatemala

All major cities are located in the highlands and Pacific coast regions; by comparison, Petén is sparsely populated. These three regions vary in climate, elevation, and landscape, providing dramatic contrasts between hot, humid tropical lowlands and colder, drier highland peaks. Volcán Tajumulco, at 4,220 metres (13,850 feet), is the highest point in the Central American countries.

The rivers are short and shallow in the Pacific drainage basin, larger and deeper in the Caribbean and the Gulf of Mexico drainage basins. These rivers include the Polochic and Dulce Rivers, which drain into Lake Izabal, the Motagua River, the Sarstún, which forms the boundary with Belize, and the Usumacinta River, which forms the boundary between Petén and Chiapas, Mexico.

Economy:

Guatemala is the largest economy in Central America, with a GDP (PPP) per capita of US$5,200. However, Guatemala faces many social problems and is one of the poorest countries in Latin America. The income distribution is 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 54.0% of the population of Guatemala to be living in poverty in 2009.

In 2010, the Guatemalan economy grew by 3%, recovering gradually from the 2009 crisis, as a result of the falling demands from the United States and others Central American markets and the slowdown in foreign investment in the middle of the global recession.

Remittances from Guatemalans living in United States now constitute the largest single source of foreign income (two-thirds of exports and one tenth of GDP).

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Guatemala Export Map

Some of Guatemala’s main exports 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 for 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. In 2014, the government was considering ways to legalize poppy and marijuana production, hoping to tax production and use tax revenues to fund drug prevention programs and other social projects.

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.

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