Market diversification, continue serving the portfolio of 67 potential projects foreign direct investment, promoting public investment and creating laws to generate better conditions are aspects that the Government listed as part of the measures to continue promoting economic growth, exports, foreign direct investment, as well as infrastructure and social aspects.
The President of the Republic, Bernardo Arévalo, mentioned that the Government’s projection is to achieve economic growth of up to 4.3%; and although he hopes that more will be achieved, the data will be known at the end of the year, he said. At the moment, very strong growth indicators are reported.
In it first quarter of 2026, gross domestic product (GDP) grew 4.5%according to figures from the Bank of Guatemala (Banguat). The Monetary Board maintains its GDP growth projection for the end of 2026 at 4.1%, despite the conflict in the Middle East, which has impacted international prices of oil and its derivatives and has had effects on inflation.
Foreign investment
The strategy of the Ministry of Economy (Mineco) to attract foreign direct investment (FDI) is complemented by the promotion of exports through market diversification, stated the minister of said portfolio, Gabriela García.
In this case, in ProGuatemala, the National FDI Attraction Agency, the country has a portfolio of 67 projects, of which 31 correspond to new investments and 36 to reinvestments of already established companies, which continue to expand their operations.
“The fact that a company came and decided to reinvest in Guatemala is a great sign for those who are considering settling in the country,” said the official, citing as an example the expansion announced by the Yazaki company.
confirmed that FDI grew 6.8% during the first quarter of 2026, compared to the same period of the previous year, registering US$529.7 million. It is projected to close the year with at least US$2.65 million in investments, a figure that was considered the floor of expectations for 2026, so they hope to exceed it.
The main sectors are financial and insurance services, manufacturing, agribusiness, food and beverages, information technologies, call centers and process outsourcing (BPO) services.
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The minister explained that the countries that have invested the most in Guatemala for several years are the United States, the Dominican Republic, Mexico, Colombia and those in Central America; However, he noted that others have expressed their intention to invest or increase their investments, both new and reinvestments, including the United Arab Emirates, Germany, France, Japan, South Korea and Spain.
According to the minister, the country is moving towards a more open economy integrated into global value chains. He stated that 2026 and 2027 could mark the greatest growth in exports and foreign direct investment in the last 15 years, driven by the opening of new markets and the attraction of capital.
Exports and market diversification
In exports, the authorities reported that, as of May 2026, there will be a growth of 5.5% compared to the same period last year. According to the Bank of Guatemala, US$7,199 million were reached in that period.
Guatemala has 16 current trade agreements, which provide preferential access to 45 markets. The most recent was that of Peru, in force since July 1 of this year. However, there are at least six more in the process, as well as other types of negotiations, apart from the bilateral agreement with the United States.
When the agreement with the US comes into force
In the case of the United States, although Guatemala already has the FTA (CAFTA-DR), after that country imposed global tariffs in 2025, in January of this year a reciprocal trade agreement was signed between both countries, which includes the exemption of tariffs for around 72% of Guatemalan products. The country also assumed a series of commitments in different aspects.
In this regard, the Minister of Economy indicated that next week the country will have its first official hearing to deliver the results of the commitments, so she hopes to “come with clearer information regarding the entry into force, which tariff items and when.”
Agreements and FTAs in process
- The Free Trade Agreement (FTA) with South Korea: Guatemala approved the accession process, but, due to regional integration provisions, it must be ratified by the rest of the Central American countries. Nicaragua has already completed its process, and it is being managed that El Salvador, Honduras, Costa Rica and Panama complete their processes.
- Negotiations for a partial scope agreement were reactivated with Trinidad and Tobago. US$19.8 million are already exported to that country and trade is expected to expand.
- There is also the EFTA (Iceland, Liechtenstein, Norway and Switzerland). Guatemala seeks to join the current agreement between that association and Central America.
- A partial scope agreement is being negotiated with Canada which, according to Mineco, is progressing more quickly than expected.
- In the case of the United Arab Emirates, a partial scope agreement or FTA is being negotiated, with the objective of diversifying exports. Around US$89 million are exported to that country, of which US$82 million correspond to cardamom.
- A trade agreement is being negotiated with Morocco, since that country has expressed interest in concluding it with Guatemala.
Trade promotion
Regarding trade promotion through international fairs, markets have also diversified. In 2025, six fairs were participated in, with 55 companies, and the business projection was Q91.4 million.
In the first half of 2026, seven fairs have been held, with 76 companies, and the business projection is estimated at Q352.9 million.
What is it attributed to, according to the government
Arévalo mentioned that among the actions to improve the attraction of investment there are several laws, such as the contracting law and the port law, which he said will help security and economic development.
He attributed economic growth to the country’s comprehensive strategy, which has been reflected in the evaluations of risk rating agencies and the International Monetary Fund (IMF). “This is the result of serious economic management, of the strategic use of ongoing public investment and especially of the trust that this government has built in the eyes of economic agents, national and international investment,” he expressed.
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He explained that the country starts from a stable macroeconomy and has complemented that strength with public investment in strategic infrastructure, such as roads, ports, airports and trains, to facilitate economic development and attract investments. But also other types of social investment such as education, health, rural roads and social programs to strengthen human capital. Another point mentioned is the promotion of the modernization of the State through the digitalization of procedures and legal reforms aimed at improving the business climate, in addition to promoting new contracting and civil service laws, among others.
Regarding the port law, the president added that they hope that the Legislature will finish the last processes to be able to begin to know the initiative, and described it as a fundamental law within the framework of the modernization of the State and the creation of conditions to have a reliable administration of the ports.
This proposal separates the operational part from the administrative part of the ports, “so it facilitates both the security that must be established and the economic development, based on investments of all kinds in the country’s ports,” said Arévalo.
Furthermore, he considered that the strengthening of justice institutions provides greater legal certainty to investors and that, together, these actions contribute to making Guatemala a more attractive destination for investment.