NATIONAL INTELLIGENCE SURVEY 71; GUATEMALA; THE ECONOMY

• Document Type: CREST
• Collection: NIS
• Document Number (FOIA) /ESDN (CREST): CIA-RDP01-00707R000200110047-2
• Release Decision: RIF
• Original Classification: U
• Document Page Count: 28
• Document Creation Date: October 25, 2016
• Sequence Number: 47
• Content Type: REPORTS

GS /E
uatemala
rch 1973
MONAL IN i ELLIGENCE SURVEY
OFFICIAL USE ONLY
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This chapter was prepared for the NIS by the
Central Intelligence Agency. Research was sub-
stantially completed by October 1972.
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CONTENTS
This General Survey supersedes the one dated ]an-
uary 1969, copies of which should be destroyed.
A. Trends of development 1
A basically agricultural country with a large sub-
sistence sector; dynamic commercial sector with
an expanding industrial component; growth of
gross domestic product; basic problems.
B. Sectors of the economy 3
CDP by sector of origin.
1. Agriculture, forestry, and fisheries 3
Role of agriculture; growth of production.
a. Land use, ownership, and agrarian
reform 3
Influence of geography; highly concen-
trated landownership; reform efforts.
b. Agricultural inputs and productivity 4
Export sector and subsistence farming;
problems of credit and marketing as ob-
stacles to growth.
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Page
c. Principal crops
5
(1) Export
5
Coffee, cotton, bananas, sugar.
12
(2) Domestic
7
Corn, beans, rice, wheat.
1.4
d. Livestock
8
Rapid growth of beef production for
Land use chart)
export.
15
e. Forestry and forest products
8
Resources and exploitation; rubber pro-
Coffee harvestir photo)
duction.
16
f. Fisheries
8
Relatively undeveloped.
Manufacturing output table)
2. Fuels and power
9
a. Fuels
9
Dependence on imported petroleum; re-
tures (table)
fineries.
Fig. 9
b. Electric power
9
Capacity and output; role of the gov-
15
ernment.
19
3. Metals and minerals
9
Mining industry relatively undeveloped;
19
prospects.
17
4. Manufacturing and construction
10
Largest manufacturing sector in Central
America.
a. Principal branches of manufacturing
10
Food processing, tobacco, beverages,
textiles, clothing, intermediate products.
b. Construction
11
Increasing activity in 1971 resulting from
public investment.
5. Domestic trade
11
Unintegra`.ed domestic market; wide variety
of outlets; Indian markets; inadequacies of the
agricultural distribution system.
Page
C. Economic policy and development 1.2
1. Policy
12
Efforts at economic reform.
Fig. 1
a. Public finance
12
Trends in revenues and expenditures.
(chart)
b. Banking, money supply, and prices
1.4
Banking system; traditionally conservative
3
monetary policy; price stability.
Land use chart)
2. Development
15
Planning; role of public and private invest-
5
ment.
Coffee harvestir photo)
3. Manpower
16
Characteristics of the labor force; unemploy-
7
ment and underemployment; productivity;
Manufacturing output table)
working conditions and labor organization.
Fig. 8
D. International economic relations 17
1. Foreign trade 17
Importance to the economy; the Central
American Common Market CACM
a. Composition of trade 17
Trends in exports and imports.
b. irection of trade 17
The United States still the most important
trading partner; CACM.
c. Trade regulations 18
Tariff policies; exchange rate system.
2. Balance of paymenta 19
Improved position resulting from expansion
of exports; public foreign debt.
Glossary 21
FIGURES
ii
Page
Fig. 1
Trends in gross domestic product
10
Banking system, assets and liabil-
(chart)
2
Fig. 2
GDP, by sector of origin chart)
3
Fig. 3
Land use chart)
4
Fig. 4
Economic activity (map)
5
Fig. 5
Coffee harvestir photo)
6
Fig. 6
Principal crops (te ble)
7
Fig. 7
Manufacturing output table)
11
Fig. 8
Government revenues and expendi-
13
Composition of exports (table)
tures (table)
13
Fig. 9
Government deficit chart)
14
ii
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Fig.
10
Banking system, assets and liabil-
ities (table)
15
Fig.
11
Labor force, by age group and
sex (table)
16
Fig.
12
Labor force, by economic sector
(chart)
16
Fig.
13
Composition of exports (table)
18
,Fig.
14
Composition of imports table)
18
Fig.
15
Direction of trade chart)
19
Fig.
1.6
Balance of trade chart)
19
Fig.
17
Balance of payments (table)
20
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