Throughout several columns, I have insisted on the urgency of a radical change for Guatemala. While the government and some media outlets celebrate that the country maintains a trend of macroeconomic growth or that remittances increased in January —despite the dramatic drop in December— reality is far less encouraging. If we measure per capita growth in 2023, Guatemala barely reached 1.9%, placing it in position 104 worldwide in economic growth speed per person, according to the World Bank.
Meanwhile, our neighbors are growing at a much faster pace. Nicaragua (3.1%) and El Salvador (3.0%) ranked 72nd and 73rd respectively. At first glance, a 1% difference may seem insignificant, but in terms of growth speed, it makes an enormous difference. The higher the growth rate, the greater the proportion of economic surplus that reaches the poorest and most vulnerable sectors. That is why I have argued that Guatemala’s problem is not poverty, but wealth.
But it is not only our neighbors growing faster. If we look at the global panorama, we find surprising cases. Georgia (7.7%) and Armenia (7.5%) achieved impressive growth between 2022 and 2023. In our region, Panama grew by 6% and Costa Rica by 4.6%, while African economies such as Rwanda (5.9%) are advancing steadily thanks to structural reforms and openness to investment. Who would have imagined a decade ago that Rwanda would grow faster than Guatemala?
What is the common factor?
In many of these cases, the key has been broad deregulation, economic freedom, and a favorable business environment. This has allowed foreign investment to flow strongly. Singapore, for example, received foreign investment equivalent to 34.9% of its GDP in 2023, meaning more than one-third of its economy. Estonia received a solid 12.9%, consolidating itself as a highly attractive country for business.
The contrast with Guatemala is enormous. While Singapore, Estonia, and other countries have committed to integrating with the world, Guatemala remains trapped in unnecessary regulations and erratic policies. Barely 1.5% of the country’s GDP came from foreign investment in 2023, placing us in position 97 worldwide. And again, our neighbors are doing much better: Panama (2.8%), the Dominican Republic (3.9%), and Costa Rica (5.4%) are attracting much more capital and growing faster.
And if we want to understand what attracting investment truly means, we only need to look at Namibia. In 2021, this African country received foreign investment equivalent to 6.7% of GDP. The following year, it increased to 8.4%, and in 2023 it reached an impressive 18.6%. In other words, in just three years, Namibia received the same proportion of foreign investment that Guatemala has received over the last 16 years.
It is unacceptable that Guatemala remains stagnant while other countries, such as Rwanda and Namibia, which previously did not even appear in discussions about global competitiveness, are now examples of growth and capital attraction.
Why Does Nobody Want to Invest in Guatemala?
The reasons are clear. Guatemala carries hostile regulatory frameworks, legal uncertainty, and a history of corruption in major business deals. The cases of Celgusa, Ferrovías, Terminal de Contenedores Quetzal, Perenco, and SabiaPharma have stained our reputation. The rules of the game constantly change from one government to another, legal conditions are modified without warning, and protections obtained under one administration can collapse under the next. Who would want to invest in a country where the future of their company depends on the political mood of the moment?
To attract investment and generate opportunities, we need an attractive tax framework, more agile regulations, less bureaucracy, better public services, and greater efficiency in both the public and private sectors.
Investors can choose among more than 200 countries worldwide to place their capital. In that fierce competition, Guatemala is not even considered. While entrepreneurs are demonized here and productive activity becomes increasingly complicated, governments elsewhere are facilitating investment.
Guatemala Is Not Even on the Map
This is where my greatest concern arises. If an investor seeks information about where to place their money, one of their main references will be the World Bank. Until 2020, this institution published the Doing Business report, in which Guatemala ranked 97th. It was not a great position, but at least we were present.
In 2024, the World Bank launched Business Ready, the new standard for evaluating which countries are prepared to do business with the world. Guatemala was not even included in the initial list of 50 evaluated countries. Among the best positioned are Singapore, Estonia, Georgia, and Rwanda, countries that have committed to deregulating their economies, improving government efficiency, and attracting investment.
And the bad news does not end there. Not only were we excluded in 2024, but we are also absent from the expansion to 58 countries for 2025. While El Salvador and Costa Rica appear in the first list, Panama and the Dominican Republic will be evaluated in the second. Guatemala will have to wait until 2026 —if we are included at all— which is not guaranteed.
Guatemala’s exclusion from the World Bank’s Business Ready is not merely a technical detail. It is a warning that our country is losing visibility on the global business map. Failing to appear in these rankings for at least two or three years means investors will not even look our way. Meanwhile, our regional peers will continue advancing, attracting investment, generating employment, and improving quality of life.
It is time to act and change course. Guatemala cannot afford to continue losing opportunities while the world moves forward. Not being in Business Ready is neither an accident nor an oversight; it is the direct result of the lack of vision and outdated economic policies that have restrained our potential for years.
The time has come to demand real change. Are we willing to continue falling behind, or are we going to reclaim our place on the global stage? To attract investment and generate opportunities, we need an attractive tax design, more agile regulations, less bureaucracy, better public services, and greater efficiency in both the public and private sectors.
The future will not wait. Neither will our children. Let us put Guatemala on the map.
