World Bank Group2014-10-092014-10-092014-08https://hdl.handle.net/10986/20400This is the first edition of the of the Guatemala Economic DNA (Diagnostic for National Action) with a focus section on job creation. The report highlights the important achievements of Guatemala on the macroeconomic stability front. It also argues that these achievements will need to be secured and makes the case for an increased focus on accelerating economic growth. For example, this edition highlights that in 2013 the country's economic activity expanded by 3.7 percent in 2013, and is projected to grow around 3.6 percent in the near-term, in line with the growth of Central American economies but below the growth rate in emerging markets. Meanwhile, inflation has been managed and the authorities deserve to be recognized for their commitment to maintain macroeconomic stability. Guatemala's economy has recovered at a modest but consistent pace since the global financial crisis of 2008-09. Guatemala's macroeconomic resilience is due to prudent macroeconomic policies and a more diversified economy in comparison to other Central American countries, which has helped cushion the impact of shocks. Accelerating growth can substantially reduce poverty in Guatemala, but this will require improvements in economy-wide productivity. Public investment is essential to achieving Guatemala's development goals, yet it remains tightly constrained by a lack of resources, and the government continues to collect the lowest share of public revenues in the world relative to the size of its economy. This report, underscores the extent to which structural constraints on enterprise development slow hiring rates, discourage technology transfer, and promote informality. Several cross-cutting factors are also closely correlated with job creation in Guatemala, including financial depth, exposure to corruption, and informality. Strengthening the rule of law and streamlining regulatory systems will be essential to facilitating firm growth, fostering greater competitiveness, and boosting the returns to both labor and capital.La economía de Guatemala se ha recuperado a un ritmo modesto pero constante desde la crisis financiera mundial de 2008-09. La resistencia macroeconómica de Guatemala se debe a las políticas prudentes y una economía más diversificada en comparación con otros países de Centroamérica, lo que ha ayudado a amortiguar el impacto de los choques. Esta primera edición del ADN Económico de Guatemala reúne los logros importantes del país en lo relacionado a la estabilidad macroeconómica. Revisa los desarrollos recientes de la economía de Guatemala, reflexiona sobre las perspectivas económicas futuras y analiza un tema de interés para el desarrollo nacional, el empleo. Este tema es particularmente relevante en Guatemala ya que, a pesar de que la economía creció de forma continua durante la última década, el país creó menos empleos que otros países con el mismo nivel de ingresos.en-USCC BY 3.0 IGOACCOUNTINGAGRICULTURAL COMMODITIESAGRICULTUREAVERAGE COSTSBALANCE OF PAYMENTSBANK BRANCHESBANK LENDINGBASIS POINTBASIS POINTSBONDBOND ISSUANCESBUDGET DEFICITBUSINESS CLIMATECAPITAL FORMATIONCAPITAL STOCKCENTRAL BANKCENTRAL GOVERNMENT DEBTCOMMERCIAL BANKSCOMMODITYCOMMODITY PRICECOMMODITY PRICESCONSUMER CREDITCONSUMER GOODSCREDIT ACCESSCREDIT CARDSCREDIT CONSTRAINTSCREDIT GROWTHCURRENCYCURRENT ACCOUNT DEFICITDEBT FINANCINGDEBT MANAGEMENTDEBT MARKETDEBT SOURCEDEMAND FOR CREDITDERIVATIVESDISBURSEMENTDISBURSEMENTSDIVIDENDSDOMESTIC CAPITALDOMESTIC CAPITAL MARKETSDOMESTIC CREDITDOMESTIC MARKETDURABLEDURABLE GOODSECONOMETRIC ANALYSISECONOMIC COMPETITIVENESSECONOMIC DEVELOPMENTECONOMIC DEVELOPMENTSECONOMIC GROWTHECONOMIC OUTLOOKECONOMIC SECTORSECONOMIC TRENDSEMERGING ECONOMIESEMERGING MARKETSEMERGING MARKETS DEBTEQUIPMENTEXCHANGE RATEEXCHANGE RATE MOVEMENTSEXCHANGE RATESEXPENDITUREEXPENDITURESEXPORT COMPETITIVENESSEXPORT MARKETSEXPORTERSEXPOSUREEXTERNAL FINANCINGEXTREME POVERTYFACTORS OF PRODUCTIONFEDERAL RESERVEFINANCIAL CRISISFINANCIAL SECTORFINANCIAL SERVICESFINANCIAL STABILITYFIRM GROWTHFISCAL CONSOLIDATIONFISCAL DEFICITFISCAL POLICYFOOD PRICESFORECASTSFOREIGN CURRENCYFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN EXCHANGE MARKETFOREIGN FIRMSFOREIGN INVESTMENTFOREIGN MARKETFOREIGN MARKETSFOREIGN TRADEFRAUDFREE TRADEFREE TRADE AGREEMENTGDPGLOBAL EXPORTGLOBAL MARKETGLOBAL MARKETSGOVERNMENT BONDSGOVERNMENT DEBTGOVERNMENT FINANCESGOVERNMENT REVENUEGOVERNMENT REVENUESGROSS DOMESTIC PRODUCTGROWTH RATEGROWTH RATESHUMAN CAPITALHUMAN DEVELOPMENTIMMUNIZATIONINCOMEINCOME GROWTHINCOME TAXINCOME TAXESINFLATIONINFLATION EXPECTATIONSINFLATION RATEINFLATION RATESINFLATIONARY PRESSURESINFORMATION TECHNOLOGYINTEREST PAYMENTSINTEREST RATEINTEREST RATE DIFFERENTIALINTEREST RATE DIFFERENTIALSINTEREST RATESINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL MARKETSINTERNATIONAL RESERVESINVENTORIESINVESTINGINVESTMENT CLIMATEINVESTMENT FLOWSINVESTOR BASEISSUANCEJOB CREATIONLABOR MARKETLABOR MARKETSLIVING STANDARDSLOCAL CURRENCYLONG-TERM INTERESTLONG-TERM INTEREST RATESMACROECONOMIC LEVELMACROECONOMIC MANAGEMENTMACROECONOMIC POLICIESMACROECONOMIC STABILITYMARKET CONDITIONSMATURITYMIDDLE INCOME COUNTRIESMIDDLE-INCOME COUNTRIESMONETARY FUNDMONETARY POLICYMORTGAGE MARKETNATURAL DISASTERSNET EXPORTSNOMINAL INTEREST RATENON-PERFORMING LOANSOFFSHORE FINANCINGOIL PRICEOIL PRICESOPEN ECONOMYOUTSTANDING BANK LOANSOUTSTANDING LOANSPER CAPITA INCOMESPORTFOLIOPORTFOLIO INVESTMENTPORTFOLIOSPOST-CRISIS PERIODPRICE CHANGESPRIVATE CAPITALPRIVATE CAPITAL INFLOWSPRIVATE INVESTMENTPRIVATE SECTOR CREDITPRODUCTIVITYPRODUCTIVITY GROWTHPUBLIC DEBTPUBLIC FINANCEPUBLIC FINANCESPUBLIC INVESTMENTPUBLIC SAVINGSPUBLIC SPENDINGPUBLIC-PRIVATE PARTNERSHIPSPURCHASING POWERRAPID ECONOMIC GROWTHRATE OF GROWTHREAL GDPREGULATORY SYSTEMSREMITTANCEREMITTANCESRESERVESRESIDENTIAL MORTGAGERETURNRETURNSRULE OF LAWSALES GROWTHSHARE OF CREDITSHORT-TERM DEBTSTOCKSSUPPLY SHOCKSTAXTAX CODETAX COLLECTIONTAX COLLECTIONSTAX CREDITTAX EXEMPTIONSTAX ON CAPITAL GAINSTAX RATETAX RATESTAX REGIMETAX REVENUESTAX STRUCTURETAX SYSTEMTAXATIONTECHNOLOGY TRANSFERTOTAL DEBTTOTAL FACTOR PRODUCTIVITYTRACK RECORDTRADE BALANCETRADE TAXESTRADINGTREASURYTREASURY BONDSUNEMPLOYMENTUNEMPLOYMENT RATEUNEMPLOYMENT RATESVALUE ADDEDVOLATILITYWAGE RATESWAGESWEALTHWORLD DEVELOPMENT INDICATORS10.1596/20400