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The business community’s expectations in Guatemala

The business community’s expectations in Guatemala

By Walter Martínez

Tax and Consulting Partner at Deloitte

 

Recently, a sample group of distinguished companies in the country was surveyed on their expectations for the local economy in the coming months. 

 

After the recent times of crisis and uncertainty, the business community does not yet have total confidence in the local and global economy. However, the business community does seem to show a positive outlook for the coming months, albeit a cautious one.

The investment climate for the coming months is perceived as favorable by 52%, whereas 36% estimate that it will remain the same as in the last twelve months.

More than 84% of companies consider that the economic situation will improve or remain the same in the coming months.

70.2% of the companies surveyed estimate that they will make new investments in the next twelve months, especially in the development of new products and services and in the increase of their installed capabilities.

Upon considering the number of companies surveyed and their share in the national Gross Domestic Product (GDP), we see that this favorable expectation must be a reflection of what is happening in other sectors and industries. 

Unemployment rates are slowly decreasing, which generates a positive effect in consumption.   However, the banking sector must be more proactive and find ways to reactivate the economy through the facilitation and promotion of credit aimed at small and medium enterprises, because they are the ones who have the greatest impact on the GDP.