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Bernardo Arévalo de León became President of Guatemala in which, in addition to working to achieve an institutional balance, he must face an important economic policy, in a country that has just over half of its population in poverty. Trade relations with China and Taiwan, among the urgent points on the economic agenda.
The progressive Bernardo Arévalo de León begins his administration at the head of Guatemala, which, although it registers a low inflation figure and remains close to that of the Central American countries, keeps more than half of the population in poverty; a point that, added to the security crisis, causes many people to try to migrate to the United States.
According to the General Overview of Guatemala, carried out by the World Bank in 2023, 55.2% of the population lives in poverty and the size of Guatemala's informal economy represents 49% of the gross domestic product (GDP).
“A small and ineffective State, persistent deficiencies in access to basic services, limited work and productive opportunities and frequent disasters are some of the key factors that have contributed to poverty in Guatemala,” the Bank describes in its report.
Guatemala, “rich in natural resources”
The same report states that “Guatemala has enormous potential to generate growth and prosperity for its entire population,” considering that “the country is rich in natural resources” due to its great diversity and culture.
Regarding the consumer price index (CPI), Guatemala closed 2023 with a variation of 4.18%, and maintained its downward trend throughout the year, despite having registered peaks in September and October that They were around 5%.
The World Bank, at the beginning of this year, had reported that The Central American economy is on track to register a slowdown and will grow by 3.7%, compared to 4.1% in 2023. Panama would be in the lead with an expansion of 4.6% of the gross domestic product.
Regarding trade relations, Arévalo assured that he will seek to have greater relations with China, without neglecting commitments with Taiwan, a policy that the United States observes closely.
With EFE, Reuters and local media
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