Guatemala
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Guatemala

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IMF’s recent engagements on infrastructure governance

Public Investment Management Assessment (PIMA) June 2023
Climate PIMA (C-PIMA) June 2023

 

 

Related Documents

PIMA and C-PIMA Technical Assistance Report (Español)

PIMA and C-PIMA Country Summary Assessment

 

 

 

Summary of PIMA report

(Published in March 2024)

 

Guatemala has enormous potential for economic growth that could be harnessed by increasing public investment. An analysis published as part of the 2023 Article IV by the IMF in May 2023 suggests that increasing the stock of public capital by the equivalent of 1 GDP percentage point would increase GDP by 0.3 percent in the short term and 0.8 percent in the medium term1 thanks to the multiplier effect on foreign direct investment.

 

 

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Summary of C-PIMA report

(Published in March 2024)

 

Guatemala is a country that is highly vulnerable to a number of threats such as extreme rainfall, droughts, tropical cyclones, heat waves, frosts, floods (river, urban, coastal), forest fires, earthquakes, tsunamis, volcanic activity, and landslides. The Risk Report index for 2023 ranks Guatemala 35th out of 191 countries with a risk class that is characterized as high. These threats are projected to pose greater risks in the future as climate volatility increases. Extreme heat and the uptrend in temperatures, coupled with the high risk of water scarcity, make the country very vulnerable. In addition to these exposures, Guatemala ranks 135th out of 189 countries in the Human Development Index (2021 data), which means that climate vulnerabilities can have a major impact on the population and can be detrimental to their living conditions. Although an increase in annual rainfall of 122 mm has been observed, it has been sporadic and geographically dispersed, so it has not mitigated the increase in temperatures and its effects. The University of Notre Dame's Vulnerability Index (ND-GAIN 2020) and IMF studies on climate resilience show that energy, transportation, and urban structures are primarily affected.

 

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