Importance of the industry in Guatemala:
Construction is considered to be the largest generator of employment in the world; it causes a multiplier effect by impacting other industries, since it uses services and inputs from other sectors to produce; it provides basic welfare elements to society by building from national infrastructure (bridges, roads, hospitals, schools) to personal welfare (housing, shopping centers, hotels, restaurants); finally, because it has the capacity to reactivate the economy quickly, since the investment and production of the projects can be generated in the short term.
Guatemala is privileged to be in a geostrategic position for access to important markets such as the United States of America and Mexico. Based on this, there are efforts to position the country as the most important logistics platform in Mesoamerica. These efforts consolidate the development of road, port, airport, industrial and housing projects by the Government of Guatemala and the private sector.
In 2021, preliminary figures from the Bank of Guatemala showed a 7% growth in the construction sector and the sector accounted for 4.3% of the country’s Gross Domestic Product (GDP).
A 30% increase in total square meters of construction is projected for the medium term, which translates into a 0.5% increase in national GDP.
Construction Sector in Figures
Annual Construction Industry Growth
In Central America, Guatemala has shown the greatest dynamism in construction sector activity
Figures of the Monthly Index of Economic Activity (original series) as of December 2021. El Salvador as of November 2021 – Source: Central Banks
Quick Window for the Construction Industry
It is a digital platform whose result of a joint effort by the Government of Guatemala and the Guatemalan Chamber of Construction, provides construction companies with up-to-date relevant industry information and statistics, training programs, networking to promote the exchange of contacts and business, and facilitating the management of paperwork for construction projects.
Guatemala is Moving Forward: Infrastructure Axis
In October 2021, an inter-institutional agreement was signed between the public and private sectors, which allows for a plan to drastically transform the infrastructure and become the logistics center of the region, and as a direct consequence, the country’s economic recovery.
This, in accordance with the Government Plan 2020- 2024, which is based on fostering economic development and promoting competitiveness through road infrastructure with more than 52 projects and 990 kilometers to strengthen trade relations for imports and exports of Guatemala.
In March 2022 the Congress of the Republic of Guatemala approved the LAW TO STRENGTHEN THE MAINTENANCE AND CONSTRUCTION OF STRATEGIC INFRASTRUCTURE (Decree 21-2022) which aims to provide the Ministry of Communications, Infrastructure and Housing with the necessary resources to execute the prioritized projects to make Guatemala a more competitive country.
Public Private Partnerships (PPP)
Another modality in which the construction sector is being boosted is through Public-Private Partnership (PPP) contracts. In 2010, the “Law of Alliances for the Development of Economic Infrastructure” was issued with the purpose of promoting economic development through investment projects in roads, electricity generation and distribution, ports, airports and railways that are necessary for the country but exceed the financial capacity of the State. (Source: ANADIE)
In 2021, the Congress of the Republic of Guatemala approved the first project under this modality.
Type of Public-Private Partnership projects:
Not included: Water, Health and Education Projects
|Escuintla-Puerto Quetzal Highway||US$80 million|
|Urban Road and Urban Train (Metrorail)||US$770 million|
|Guatemala City Northeast Bypass (Via Express)||US$300 millon|
|Puerto Seco Tecún Umán||US$ 40 millon|
|Modernization of La Aurora International Airport||US$120 millon|
|Government Administrative Complex||US$240 millon|
|East-West Mass Public Transportation System of Guatemala City||To be defined|
|Estimated total investment of more than||US$1,550 millon|