Guatemala Economic DNA : Harnessing Growth with a Special Focus on Jobs
This is the first edition of the of the Guatemala Economic DNA (Diagnostic for National Action) with a focus section on job creation. The report highlights the important achievements of Guatemala on the macroeconomic stability front. It also argues...
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Language: | English en_US |
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Guatemala
2014
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Online Access: | http://documents.worldbank.org/curated/en/2014/08/20191048/guatemala-economic-dna-harnessing-growth-special-focus-jobs http://hdl.handle.net/10986/20400 |
Summary: | This is the first edition of the of
the Guatemala Economic DNA (Diagnostic for National Action)
with a focus section on job creation. The report highlights
the important achievements of Guatemala on the macroeconomic
stability front. It also argues that these achievements will
need to be secured and makes the case for an increased focus
on accelerating economic growth. For example, this edition
highlights that in 2013 the country's economic activity
expanded by 3.7 percent in 2013, and is projected to grow
around 3.6 percent in the near-term, in line with the growth
of Central American economies but below the growth rate in
emerging markets. Meanwhile, inflation has been managed and
the authorities deserve to be recognized for their
commitment to maintain macroeconomic stability.
Guatemala's economy has recovered at a modest but
consistent pace since the global financial crisis of
2008-09. Guatemala's macroeconomic resilience is due to
prudent macroeconomic policies and a more diversified
economy in comparison to other Central American countries,
which has helped cushion the impact of shocks. Accelerating
growth can substantially reduce poverty in Guatemala, but
this will require improvements in economy-wide productivity.
Public investment is essential to achieving Guatemala's
development goals, yet it remains tightly constrained by a
lack of resources, and the government continues to collect
the lowest share of public revenues in the world relative to
the size of its economy. This report, underscores the extent
to which structural constraints on enterprise development
slow hiring rates, discourage technology transfer, and
promote informality. Several cross-cutting factors are also
closely correlated with job creation in Guatemala, including
financial depth, exposure to corruption, and informality.
Strengthening the rule of law and streamlining regulatory
systems will be essential to facilitating firm growth,
fostering greater competitiveness, and boosting the returns
to both labor and capital. |
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