Guatemala Department
Central America's largest economy: 3.7% growth (2024), 1.7% inflation. Services dominate (61.3% GDP); remittances = 19% GDP. By 2026, nearshoring potential (pharma, medical devices, electronics) and digital expansion test regional competitiveness.
Central America's largest economy concentrates in Guatemala Department—the capital and surrounding metropolitan area generate disproportionate GDP while absorbing migration from rural departments. Guatemala City's 3M+ population (4M+ metro) dominates national commerce, government, and increasingly, digital services.
The service sector (61.3% of national GDP) centers here: banking, call centers, business process outsourcing, and tourism coordination. Korean-owned maquila factories operate in the highlands producing textiles for export. Five Free Trade Zones function as of 2024, offering tax exemptions that attract manufacturing investment.
Remittances (19% of national GDP) flow through Guatemala City's financial system before reaching recipient households nationwide. The 2024 economy grew 3.7%; inflation fell to 1.7% by December. Nearshoring potential targets four advanced sectors: pharmaceuticals, medical devices, electronics manufacturing, and business services.
2026 trajectory: Digital economy expansion (cybersecurity $65.3M, IoT $625.9M projected). Metropolitan growth absorbs residential spillover as housing prices climb. The department tests whether Central American economies can capture nearshoring benefits from US-China decoupling.