How does the U.S. State Department describe Guatemala's investment climate in 2025?

The State Department's 2025 Investment Climate Statement ranks Guatemala as Central America's largest economy, with a 2024 GDP of 113.2 billion dollars and estimated growth of 3.7 % (3.5 % in 2023). More than 200 U.S. and other foreign firms hold active investments under CAFTA-DR; FDI flows rose 5.2 % in 2024 over 2023, concentrated in financial and insurance activities, manufacturing, commerce and vehicle repair, information and communications, and water, electricity and sanitation, with the caveat that an uncertain share of FDI is domestic investment channelled through Guatemalan-owned companies in Panama. In April 2025 the main power distributors tendered the fifth Generation Expansion Plan (PEG-5) to contract 1,400 MW. The impediments it lists are complex laws and regulations, inconsistent judicial decisions, bureaucratic hurdles and corruption; citing CAFTA-DR, the United States has raised concerns about enforcement of labor and environmental laws. The statement records the Arévalo administration's anti-corruption priority (a code of ethics for public employees, probity units in ministries, digitalisation) and Transparency International's citing of it when Guatemala improved in the Corruption Perceptions Index for the first time since 2013, while noting the reforms have not yet changed corruption at local levels.