Guatemala

Economy:
Guatemala's population and its GDP of $35 billion are the largest in Central America. Though GDP growth rates have averaged 3.3 percent per year since 1996, 56 percent of the population lives below the poverty line and 16 percent lives in extreme poverty. More than three-quarters of Guatemala's indigenous people are poor.

Agriculture (chiefly coffee, sugar, and bananas) accounts for one fourth of GDP. Half the labor force works in agriculture, 35 percent in services and 15 percent in industry.

Microbusinesses are a critical economic sector: they employ 1.5 million people and earn an average $168 per month. Remittances are an important source of hard currency, with approximately $3 billion received by Guatemalans in 2006.

Climate for microfinance:
• The microfinance industry in Guatemala is relatively well established and sophisticated. Local commercial banks are actively involved in microfinance, as are some 35 NGOs.
• Notwithstanding the broad reach of these institutions, the Guatemalan rural sector is relatively underserved by financial services.

FINCA Guatemala serves clients in Guatemala City, Santa Lucia and Mazatenango and is expanding to Boca del Monte, Barbarena, Sanarate, and Chimaltenango.