Editing Economy of Guatemala (section)

==Economic priorities==
{{See also|Caribbean Community}}
Current economic priorities include:{{Citation needed|date=January 2017}}
* [[liberalization|Liberalizing]] the trade regime;
* Financial services sector reform;
* Overhauling Guatemala's public finances;
* Simplifying the [[tax]] structure, enhancing tax compliance, and broadening the tax base.
* Improving the investment climate through procedural and regulatory simplification and adopting a goal of concluding treaties to protect investment and [[intellectual property]] rights.

Import [[tariff]]s have been lowered in conjunction with Guatemala's Central American neighbors so that most fall between 0% and 15%, with further reductions planned. Responding to Guatemala's changed political and economic policy environment, the international community has mobilized substantial resources to support the country's economic and social development objectives. The United States, along with other donor countries—especially France, Italy, Spain, Germany, Japan, and the international financial institutions—have increased development project financing. Donors' response to the need for international financial support funds for implementation of the Peace Accords is, however, contingent upon Guatemalan government reforms and counterpart financing.

Problems hindering economic growth include high [[crime]] rates, [[literacy|illiteracy]] and low levels of [[education]], and an inadequate and underdeveloped capital market. They also include lack of [[infrastructure]], particularly in the transportation, [[telecommunications]], and electricity sectors, although the state telephone company and electricity distribution were privatized in 1998. The distribution of income and wealth remains highly skewed. The wealthiest 10% of the population receives almost one-half of all income, and the top 20% receives two-thirds of all income. Approximately 29% of the population lives in [[poverty]], and 6% of that number live in extreme poverty. Guatemala's social indicators, such as infant mortality and illiteracy, are successively improving, but remain in low growth and are still among the worst in the hemisphere.<ref>{{Cite web|url=https://2009-2017.state.gov/outofdate/bgn/guatemala/9883.htm|title=Guatemala (04/01)|website=U.S. Department of State|access-date=21 January 2016}}</ref> In 2000 the percentage of girls completing primary school was approximately 52%. That percentage rose in 2010 to about 81%. The completion rate in primary school for boys in 2000 was 63% and rose to 87% in 2010.

In 2005 Guatemala ratified its signature to the [[Dominican Republic-Central America Free Trade Agreement|Dominican Republic-Central America Free Trade Agreement (DR-CAFTA)]] between the United States and several other Central American countries.<ref>{{Cite web|url=https://www.cbp.gov/sites/default/files/documents/CAFTA%20Sum%20Page.pdf |archive-url=https://web.archive.org/web/20150913213325/http://www.cbp.gov/sites/default/files/documents/CAFTA%20Sum%20Page.pdf |archive-date=2015-09-13 |url-status=live|title=CAFTA-DR Summary|date=24 March 2015|website=U.S. Customs and Border Protection|publisher=Department of Homeland Security|access-date=21 January 2016}}</ref>

The electricity sector is being privatized, resulting in very high prices. In rural areas, although electricity consumption per household is very low, the ratings can represent more than 20% of farmers' salaries according to the Comité de développement paysan (Codeca). Since privatization, the price per kilowatthour has risen to the point of becoming one of the most expensive in Latin America. To protest against this situation and demand the renationalization of electrical services, Codeca members organized demonstrations and exposed themselves to repression. Between 2012 and 2014, 97 people were imprisoned, 220 wounded and 17 killed.

===2009 food crisis===
In September 2009, Guatemalan President [[Álvaro Colom]] stated that the situation reduced the domestic food supply and reduced Guatemala's ability to import food. Colom said the government would immediately seek assistance for emergency food supplies.<ref name=cnnfood>{{Cite news | url=http://edition.cnn.com/2009/WORLD/americas/09/09/guatemala.calamity/index.html | title=Guatemala declares calamity as food crisis grows | work=[[CNN]] | date=9 September 2009}}</ref>

A number of international organizations expressed concern about Guatemala's economic status in 2009. They were the [[United Nations]] [[World Food Programme]] (WFP) and the [[World Bank]].<ref name=cnnfood/>