History Culture Landscape Industry

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2 History Culture Landscape Industry

3 Guatemala The largest economy of Central America (37.5% PIB). 15 million inhabitants Access to 67.5 million persons in the Mesoamerican market 70% of the population is under 30 years of age It has the largest student population in Central America Fifth most open economy in Latin America Enviable geographic position

4 International investors will visit Guatemala

5 United States of America Mexico Central America The Caribbean

6 FTAs and partial agreements by Guatemala In force: 1. PSA with Venezuela 2. FTA with Mexico 3. FTA with Dominican Republic 4. PSA with Cuba 5. DR-CAFTA 6. FTA with Taiwan 7. FTA with Panama 8. FTA with Colombia 9. FTA with Chile 10. PSA with Belize Negotiated Agreements being negotiated: And to come into force soon: 1. FTA with Canada 1. Association Agreement with 2. PSA with Trinidad and Tobago European Union 3. FTA with EFTA countries 2. PSA with Ecuador 3. FTA with Peru 4. Convergence of agreements with Mexico PSA=Partial Scope Agreement FTA=Free Trade Agreement

7 Country ratings AGENCY Jul-05 Jul-08 Jul-12 FITCH BB- (1) BB+ (Stable) BB+ (Stable) MOODY'S Ba2 (Stable) Ba2 (Stable) Ba1 (Stable) S&P BB-(Stable) BB (Stable) BB (Stable) OCDE Source: Fitch, Moody s, S&P, OCDE

8 Ranking Doing Business 2013 PANAMÁ 61 A change of 5 positions with improvement in 3 of the categories assessed. GUATEMALA 93 BELICE 105 COSTA RICA 110 EL SALVADOR 113 NICARAGUA 119 HONDURAS 125

9 Doing Business ranking of Central America Economy Ease to do business Ease to receive electric power service Ease to register property Access to Credit Ease to pay taxes Guatemala Belize Costa Rica El Salvador Nicaragua Honduras

10 GDP diversification Source: BANGUAT

11 Direct foreign investment in Guatemala NET FLOW OF DIRECT FOREIGN INVESTMENT BY ECONOMIC ACTIVITY OTHER ACTIVITIES 1% AGRICULTURE 3% TELECOMMUNIC ATIONS 4% MINES AND QUARRIES 32% BANKS AND FINANCIAL INSTITUTIONS 8% TRADE 16% MANUFACTURE 36% BANGUAT

12 Guatemala stands out as the fifth most open economy to DFI in Latin America Laws that support DFI Guatemala guarantees for foreign investors the same benefits enjoyed by local investors The state of Guatemala enjoys a long history of absolute respect for private investment and of compliance with its contract and credit commitments. There is absolute freedom in the country to repatriate dividends. The fiscal system and tax rates are highly competitive in the global environment.

13 Laws that support DFI Foreign Investment Act Public-private Partnership Act Free Foreign Exchange Negotiation Act Outsourcing Act Free Trade Zone Act ZOLIC

14 Connectivity Air Madrid: 11h 30min NYC: 4h 42min Dallas: 3h 35min Miami: 2h 37min Panama: 2h 15min Mexico DF: 2h 10min Bogota: 2h 30min Santiago de Chile: 8h 10min Santo Domingo: 3h 12min 2 International airports: 17 local airports La Aurora Airport: Category A1. Capacity: 4 million passengers per year 160 weekly flights Los Angeles: 5h Lima: 4h 44min Sao Paulo: 8h 56min

15 Connectivity By sea Ports: 250 miles to go from the Atlantic to the Pacific Ocean Santo Tomás (Atlantic) 550,000 containers per year Puerto Barrios (Atlantic) 375,000 containers per year Puerto Quetzal (Pacific) 350,000 containers per year

16 Connectivity Land The country of Central America that is closest to the United States by land Border with NAFTA

17 Connectivity Telecommunications Favorable and flexible legal framework Competitive market A network system with redundancy (if a server fails, a back-up server will start operating immediately) Telephone service coverage growth: 500,000 (1995) to 20,7 million (2012). 65% annual mobile phone growth

18 Connectivity Telecommunications High capacity transportation networks Lowest prices in the region 3 submarine cables, 2 terrestrial cables (Arcos, Energía, Maya). More than 25 fiber optic rings in Guatemala. G4 technology for wireless communications; for fixed communications there are 10 megabit per second connections available 70 Call Centers with over 18,800 agents

19 Some multinational companies operating in Guatemala