Overview

The construction sector was key to Guatemala’s growth and productive recovery in the year 2021, representing 5.5% of the national GDP according to the Central American Bank for Economic Integration (CABEI); and in the year 2022 the sector is expected to grow 4.8%.  Despite an early 2022 increase in some materials such as steel and other metals, the sector is thriving.  However, it is necessary to continue promoting laws, reforms and regulations for the development of the country’s strategic infrastructure. 

Opportunities

The construction sector continues being one of the engines of the economy in the short term.  The government has set infrastructure development as a key target by focusing on the development of projects that will stimulate the demand for construction materials and services. The government announced a series of priority national development initiatives, of which, according to the Guatemala National Competitiveness Program (PRONACOM), is expected an increase in investments in the interior of the country focusing on rural infrastructure, housing and logistics. Similarly, in 2021 representatives of the Government of Guatemala and the private sector signed an inter-institutional cooperation agreement called Guatemala No Se Detiene.  This program is set to be a roadmap to improve conditions for the Guatemalan economy, as well as their citizens, and includes 41 infrastructure initiatives that are promoted by the central government. These initiatives have the potential to attract significant amounts of public and private funds to the construction sector in the following years.  Some of these projects include:

In addition, the National Partnership Agency for Economic Infrastructure Development (ANADIE)  promotes public-private partnerships for investment, through the implementation of the Partnership for the Development of Economic Infrastructure Law. ANADIE already has a portfolio of six projects with prefeasibility or feasibility studies completed but not yet tendered.  All together these projects add the possibility of investing more than $1.5 billion in adequate infrastructure and safe and reliable transportation services and facilitating access to markets and basic social services.

For more information: https://anadie.gob.gt/proyectos/

Also, the government is seeking congressional approval for the Development of Road Infrastructure Law  with the goal of extending and increasing the quality of the country’s road infrastructure.  Specifically, increasing the amount of Guatemala’s road infrastrucure  from 16,457 kilometers to 37,952 kilometers in the next 15 years.  

Regarding the development of real estate housing projects, it is estimated that the housing deficit in Guatemala is  1.9 million units.  Under current conditions, the housing market only serves 37.5% of the total population. In order to reduce this deficit, the “Preferential Interest for Access to Social Housing Law” has been introduced into Congress.   The purpose is promoting the alliance among government, housing developers and financial sector to reduce the interest rate during the first 10 years of the mortgage term.

Another opportunity in this sector is the supply of raw materials and construction equipment.   According to Import statistics during the year 2021, Guatemala imported over $1 billion in construction materials, which represents an increase of 40% compared to 2020 due to the fact that construction activities resumed after the pandemic in 2020. Experts indicate that 2022 will be a year of adjustments and the expectations should be aligned.

Events

We recommend the following events to connect with Guatemalan buyers, representatives, and industry officials:

• Feria Internacional de la Construcción (CONSTRUFER), Guatemala City.  This fair is organized every year in the month of August by the Guatemalan Chamber of Construction, CONSTRUFER is chosen by investors in the region to present and launch products, materials, services, machinery, vehicles and technology. 
• ExpoCasa, Guatemala City.  This fair is organized every year on the month of July, it is the largest housing trade show in Guatemala.
• Expo Construir Guatemala, is a virtual event that takes place every year in May, organized by a virtual community “Construir” from Central America and the Caribbean.

Resources

• Camara Guatemalteca de la Construccion (Guatemalan Construction Chamber): This organization works to promote the importance of construction in the Guatemalan economy. Upon joining the group, the site provides market indicators about both the economy and the construction industry in addition to a variety of publications about the Chamber, its unions, and the overarching regional construction chamber.  https://www.construfer.gt/
• Guatemala National Competitiveness Program (PRONACOM).   https://www.pronacom.org
• Guatemalan Development Foundation  (FUNDESA).   https://www.fundesa.org.gt/

Contact Information

Interested parties may contact Commercial Specialist Carolina Barrientos at carolina.barrientos@trade.gov