The World Bank In Guatemala

Guatemala is a country of deep contrasts, known for its rich cultural heritage and geographic diversity, but also marked by persistent social and economic inequalities. Most of the population lives in rural areas and works in the informal sector, while a smaller urban population enjoys better living conditions and access to formal services. These disparities translate into long-standing inequality, limited state capacity to deliver quality public services, and low trust in institutions, factors that limit the progress toward more inclusive and sustainable growth.

The country faces several structural challenges, including high rates of chronic child malnutrition, low coverage and quality in education, and insufficient access to health services. The economy remains constrained by low productivity, high informality, and dependence on agriculture and low-value-added sectors. Employment is predominantly informal, with limited opportunities for upward mobility or social protection. Women, youth, and Indigenous peoples face additional barriers to participating fully in the labor market, and gender disparities in employment and social outcomes remain significant.

Guatemala is also highly vulnerable to natural disasters and environmental challenges, including frequent earthquakes, hurricanes, and droughts, which disproportionately affect the poorest communities. Environmental degradation, such as deforestation and soil erosion, worsens rural poverty and food insecurity.

By addressing these challenges, Guatemala can narrow inequality gaps. This will require investing in human capital, expanding the coverage and quality of public services, promoting a more dynamic and inclusive private sector, and strengthening resilience to climate and external shocks.

Last Updated: Oct 06, 2025

Guatemala is the largest economy in Central America in terms of population and economic activity. Over the past two decades, the country has maintained an average annual growth rate of 3.5%, supported by prudent fiscal and monetary policies and an open economy. Growth is expected to accelerate to 3.9 percent in 2025, driven by remittances, from 3.7 percent in 2024. The fiscal deficit and debt are projected to increase slightly but will remain at prudent levels.

Despite these economic advances, Guatemala faces significant challenges in reducing poverty and in bridging socioeconomic and inequalities. The country is one of the poorest countries in Latin America and only marginal reductions are expected in the next few years: poverty, measured at the share of the population living under US$8.30 per day (2021 PPPs), is expected to decrease slightly from 47.3 percent in 2023 to 46.1% in 2025.

Similarly, although the country has made efforts to improve the quality of employment, it continues to face challenges in generating more and better jobs. In 2024, 68 percent of the population worked in the informal sector, while female participation in the labor market was only 42 percent. Addressing these challenges and continuing to strengthen the quality of human capital through improved education, health, and social protection services is key to promoting Guatemala’s long-term growth, especially considering the current context and changes in the factors influencing migration.

Guatemala is strengthening its resilience to disasters and climate risks, which is essential to protect the most vulnerable and promote human capital development. Challenges to economic growth persist, making it crucial to advance reforms that improve the business climate, mobilize revenues, and expand social spending, with the goal of generating better jobs and reducing poverty.

Last Updated: Oct 06, 2025

The Crecer Sano Nutrition and Health Project has made significant progress in strengthening primary healthcare and nutrition services, improving access to safe water and sanitation in households, training and capacity-building for personnel, promoting health, and encouraging behavior change.

Key achievements include the equipping of 359 health posts, 516 community centers, and more than 2,400 population sectors with medical supplies, as well as the certification of 4,282 midwives as breastfeeding promoters. Additionally, 24 new health posts have been built and 66 rehabilitated, further enhancing the country's healthcare infrastructure.

In the area of water and sanitation, 37,200 families have received household water filters. Moreover, 241 computers and 2,286 tablets have been provided to health personnel responsible for monitoring water quality, improving the information system. Procurement processes are also underway for supplies aimed at improving family latrines and installing chlorinators in rural water systems, enhancing the provision of basic services in communities.

The project has also focused on strengthening human resources, particularly through training primary healthcare personnel as a key activity. To date, 1,170 community nursing assistants and 6,930 institutional workers have been trained. Furthermore, 238,709 complementary feeding kits have been distributed to mothers of children under two years old, promoting healthy practices.These efforts aim to transform the health and well-being of communities across seven departments in Guatemala.

Last Updated: Oct 06, 2025