Cross-border payment solution empowering your business presence across Latin America

Guatemala

Guatemala, the largest economy in Central America, is experiencing steady growth with a projected GDP expansion of about 4.1% in 2025, supported by resilient domestic consumption, robust remittance inflows, and improving external demand. The country benefits from prudent macroeconomic management, maintaining moderate inflation around 3% and a relatively low unemployment rate, while facing challenges such as high labor informality, which affects approximately 80% of the workforce. Agriculture remains a vital pillar of the economy, contributing over 10% of GDP and employing about one-third of the population, with Guatemala being a leading global exporter of coffee, sugar, bananas, and cardamom. The manufacturing sector, particularly textiles and maquila (assembly operations), supports exports and employment, while construction and trade sectors contribute to ongoing economic momentum.

Remittances play a crucial role in the economy, accounting for nearly 19% of GDP, providing a critical source of household income and consumption. Guatemala's open trade policies and strategic location favor regional connectivity and export diversification, with the United States as its main trading partner. Despite steady growth and increasing investor confidence, challenges persist, including addressing poverty, inequality, and expanding productive infrastructure. Fiscal management remains disciplined, with a public debt-to-GDP ratio around 28%, lower than many regional peers.

Guatemala's business environment is gradually improving with efforts focused on enhancing infrastructure, streamlining regulatory processes, and fostering entrepreneurship and foreign investment. Key opportunities exist in agribusiness modernization, manufacturing export growth, construction, and expanding service industries. Overall, Guatemala in 2025 presents a promising economic outlook with a balanced mix of traditional sectors and emerging industries, making it an attractive destination for investment and business expansion in the region.

Payment methods in Guatemala: