Reciently, the Bank of Guatemala published the figures corresponding to the flow of Foreign Direct Investement (FDI) during the first quarter of 2025, a key indicator to measure the progress of one of the main goals of the Guatemala Moving Forward plan:
“Increase FDI from US$900 million to US$2.1 billion by 2032”
Since the launch of the plan in 2021, FDI has maintained a positive trayectory, reaching a cumulative growth of 74% at the close of 2024. By 2025, projections point to an increase of 7.1% compared to the previous year. In the first quarter of the year, an inflow of US$476.1 was recorded, equivalent to 28.1% of the total reached in 2024 and representing an increase of 17% over the same period last year. These results confirm a trend of sustained growth in the attraction of investment to the country.
Foreign Direct Investment Flows in Guatemala (2012 – 2024)
(US$ million)
Source: Bank of Guatemala.
For this first quarter, the main FDI Flow came from Central America and the Dominican Republic with US$119.0 million, wich is no surprising considering that Panama is usually the leader in terms of the amount of funds entering the country year after year. In second place, US$81.9 have come from the United States in these first months of the year, surpassing 40% of what came from that country the previous year and representing 17.2% of the total to date. This is not a minor figure, considering the global uncertainty arising from the trade pólices that have had an impact round the world this year.
FDI flow by country (Q1 2025)
(US$ million)
Source: Bank of Guatemala.
FDI flows by economic activity (Q1 2025)
(US$ million)
Source: Bank of Guatemala.
What to expect for the rest of the year?
Recent improvements in country risk ratings reflect confidence in Guatemala’s macroeconomic stability and open a window of opportunity to consolidate new investment projects. However, for these opportunities to materialize, it is essential to make progress in key areas such as improving productive infrastructure and streamlining processes and procedures related to business operation and administration.
Strengthening these aspects not only facilitates the attraction of new investments, but also increases the country’s competitiveness in the medium and long term. These types of conditions create a more favorable environment for the development of projects with high multiplier potential for national economic activity.
