In these last two years, in McKinsey we have admired Guatemalan talent and the country’s business ecosystem growth potential. Therefore, this year we make the decision to make our regional flagship event for the first time, the McKinsey Forum.
The objective was to bring ideas, debate and exhibitions to accelerate growth in a new global era, characterized by complex challenges but full of opportunities. In this context, by dialogue with local and international referents, three key areas stand out to catalyze growth in Guatemala and the region: technology, productivity and infrastructure.
Technology as a growth lever
Technology has gone from being a competitive differentiator to an indispensable requirement. The advance of artificial intelligence and digital innovations are redefining all aspects of the business: from production to distribution, from interaction with consumers to the internal management of companies. In Guatemala, although we are advancing in the adoption of these technologies, much remains to be done.
In addition, digitalization is not just about adopting technologies; It is about adopting, climbing and taking advantage of technology strategically to increase productivity, improve services and reduce digital gaps in the population.
Productivity: The engine that drives growth
In the last 25 years, the growth of productivity in Latin America has been stagnant according to the “Investing In Productivity Growth” report by McKinsey Global Institute (MGI); Guatemala, particularly, is found in the slow growth lane.
However, the country can take advantage of its strategic location and demographic bonus in the next 10 years. Investing in the training of the workforce, in the digitalization of processes and in the continuous improvement of operations is not an option, it is a necessity to boost productivity. However, to achieve this, a joint work is required; That is, we need public investment but also of private investment and foreign investment.
Infrastructure: The key to unlocking opportunities
Infrastructure, both physical and digital, is another fundamental pillar for sustainable growth. Guatemala, due to its privileged location, can benefit from Nearshoring; A unique opportunity to access new markets, increase investment and generate employment opportunities.
However, this advantage will only be used if intelligently invested in modern infrastructure, which facilitates connectivity, trade and attraction of foreign investment. Investments in energy, transport and communications are essential to reduce operating costs and increase the competitiveness of local companies.
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In conclusion, the new global era represents several avenues to accelerate sustainable and inclusive growth. And, currently, the country is facing the opportunity to increase productivity, close historical gaps of inclusion and move towards more sustainable operations. To achieve this, it is necessary to collaborate among all the actors and work together to unlock all the potential of Guatemala. From McKinsey, our commitment to Guatemala remains firm and we will continue to bring global ideas and trends to contribute to the development and growth of the country. Thanks to all who accompanied us at the McKinsey Forum.
*Santiago Carbonell is a senior partner of McKinsey & Company Guatemala