Market Environment Information

General Economic Information

108,889 square kilometers (about 3 times of Taiwan)

17.68 million people (approximately 3/4 of the population of Taiwan)

3.5%(2019);-1.5% (2020)

USD 18.253 billion (in 2020)

Automobiles, machinery, plastics and its products, gasoline, chemical products, medicines, etc.

United States, Central America, China, Mexico and the European Union

US$1=7.70

(2020.04.03)

USD 78.6 billion (2020)

 USD 4,553 (in 2020)

USD 11.343 billion (+7.9%) (in 2020)

USD 11.5628 billion (+3.5%) (in 2020)

Garments, cardamom (75.4%), bananas, coffee and edible oil (19.2%)

United States, Central America, European Union, Mexico and Saudi Arabia (+66.8%)

US$898.4 million (2020)

The financial and insurance industry, the manufacturing industry, and the automobile industry account for 71% of total foreign investment

Estimation of Regional Economic Participation

40% of the products are
from Guatemala

The 0 th Largest
Coffee Exports
in Central America
USD 0 ,000
Export Value
in 2020
+ 0 %
Export Value
in 2020
0 %
Central American Economic
Participation Rate

Market Analysis

01

General Market Conditions

There are 22 provinces in Guatemala. Guatemala City is the country’s largest industrial and commercial center, and more than 90% of companies are located in the capital. There are many modern shopping malls, automobile exhibition halls and department stores in the city.

Living standard and consumptions vary in Guatemala. There are consumers for high-end and well-known brands on one side; middle-low and substandard quality goods on the other. Overall, the market demands are mainly dominated by low- and medium-priced products.

Guatemala promotes bilingual education in Spanish and English, and Spanish is the most-used in general business transaction documents and by business managers. General commercial transactions are paid by cash, credit cards and personal checks; for the sales of durable goods such as machinery, automobiles, refrigerators, televisions, stereos, electrical products and furniture, they are mostly promoted by instalments. Direct selling are also popular in Guatemala.

80% to 85% of enterprises in Guatemala are micro-economy with small purchase volume; some manufacturers sell goods by giving out loans with monthly payments. Large manufacturers open accounts in the US banks and import payment methods are generally used to pay for goods by partial wire transfers, partial letters of credit, and partial dollar checks. The financing cost of banks to manufacturers is relatively high, and the lending rate is as high as 15% to 25%. Since the manufacturers are more burdened, letter of credit transactions are rarely used. Generally speaking, manufacturers are still accustomed to adopting 30% to 40% wire transfer (T/T) with 60% to 70% of documents against acceptance (D/A) or documents against payment (D/P).

02

Competitor's Local Marketing Strategy

Since the small and medium-sized enterprises in Guatemala are accustomed to importing products through local agents, it is rather a better marketing strategy to seek huge local corporate agents to promote product awareness and provide after-sales service. In addition, newspapers, magazines and TV advertisements are published, and billboards are fixed to increase product exposure and popularity. In recent years, Taiwanese businessmen have also achieved good results in expanding business opportunities through local agents, such as information products, auto parts, tires, and cosmetics products.