Foreign Investment in Guatemala: Why Stability and Nearshoring Make the Country Attractive

Foreign investment in Guatemala is becoming an increasingly relevant topic for the country’s economic development. During a recent discussion on ALas845, Juan Esteban Sánchez, Executive Director of INVEST Guatemala, highlighted both the strengths and the urgent challenges that Guatemala must address to attract capital and generate employment.

Macroeconomic stability as a competitive advantage

According to Sánchez, Guatemala has qualities “to sell itself” in international markets. He emphasized the country’s macroeconomic stability compared to other regions.

“Being optimistic but very realistic, it has very good conditions that can be sold. In macroeconomics, it is one of the areas where Guatemala stands out the most in the world,” he stated.

He compared Guatemala to Turkey, a market with inflation rates above 50%.

“When investors, particularly from Arab and German markets, see that contrast, they eventually consider evaluating an investment in a country like Guatemala,” Sánchez explained.

Infrastructure: a pending challenge

Despite these advantages, Sánchez stressed that infrastructure requires “immediate action” and must be addressed jointly by the public and private sectors.

“When an investor looks at Guatemala, there are variables such as costs. At this point, shared solutions between public and private sectors are required to improve infrastructure,” he said.

He also highlighted the country’s geographic location as a major asset. In the context of nearshoring, Sánchez pointed out that Guatemala is the closest country in Central and South America to North America, making it a strategic option for companies seeking proximity to the U.S. market.

The role of BPO and call centers

Sánchez also addressed the Business Process Outsourcing (BPO) sector, noting its relevance for foreign investors. He referred to possible U.S. reforms that could affect outsourcing companies.

“There could be a reform in the United States that sets limits on hiring BPOs without certain certifications when using U.S. government resources. The evolution we’re seeing is interesting: it’s not so much the number of new BPO companies entering Guatemala, but the growing demand from clients for the services of those already established,” he explained.

The analysis underscores that while Guatemala has macroeconomic stability and geographic advantages to attract investors, it must address infrastructure challenges and adapt to potential international regulatory changes. Strengthening these areas could turn the country into a more attractive hub for foreign capital and job creation.