Guatemala is the largest economy in Central America. More than 40% of its population is indigenous and 52% is under the age of 20. Over the past three decades, Guatemala has had the least volatile growth among its neighbours. Public debt and fiscal deficits have historically been among the lowest and most stable in the region.
The EU remains one of Guatemala’s main cooperation partners. Development cooperation complements the political dialogue and trade exchanges between the EU and Guatemala under the EU-Central America Association Agreement.
Our partnership
The EU supports Guatemala’s sustainable and inclusive development, focusing on the country National Development Plan “K’atun 2032” and the implementation of the Global Gateway Investment Agenda projects. Our action builds on Guatemala’s socio-economic development strategy.
The EU adopted a Programming Document for the period 2021-27 under the Neighbourhood, Development and International Cooperation Instrument (NDICI-Global Europe). For the period 2021-2024, the EU allocated €141 million funding to the partnerships with Guatemala in three priority areas:
- Priority area 1: “Green Transition” supports the development of an inclusive, sustainable and resilient small-scale agriculture, better linked to value-chains, fostering growth, improving healthy food environments, and reducing malnutrition rates, specifically in rural areas.
- Priority area 2: “Sustainable and inclusive growth” advances an open economic structure, inclusive and competitive, and promotes a sound investment climate.
- Priority area 3: “Good Governance and Human Development” promotes strong, accountable, and transparent national, regional, and local administrations that can efficiently design and implement sustainability-oriented national policies.
EU-Guatemala Global Gateway projects
Multiannual Indicative Programme 2021-2027 for Guatemala - Annex
Our flagship initiatives
Team Europe in Guatemala focuses its action on several key sectors:
- Climate – to strengthen the climate change governance and the capacities of the public institutions.
- The Team Europe Initiative 'EU-Guatemala Green Deal', based on the action 'Fostering Ecological Transition in Petén', and co-financed by Spain, Sweden, Germany, and other international organisations, is a priority both for the Government of Guatemala and the EU. The action includes wood processing, sustainable forest management, climate resilient agriculture, solid waste management and water sanitation systems.
- Inclusive economic growth – to promote decent employment and the transition from an informal to a formal economy.
- The Team Europe Initiative 'EU-Guatemala Alliance for Growth and Jobs' to promote inclusive economic growth in Guatemala and foster the creation of decent jobs through innovation and digitalisation. This effort will encompass enhancing the competitiveness of micro, small, and medium-sized enterprises, as well as cooperatives.
- Investment in connectivity infrastructure to foster digital transformation.
- Health – accompany Guatemala to build and upgrade water treatment.
- Comprehensive Intervention Strategy for the Motagua River Basin to fight contamination.
- Drinking water supply to Guatemala City.
These are complemented by three Global Gateway Investment Agenda projects at multi country level in Central America, in the climate and energy sector:
- Five Great Forests of Mesoamerica regional initiative, seeking to form multi-stakeholder partnerships to protect 10 million hectares of forests, restore 500,000 hectares of forest, prevent species extinction and irradicate illegal cattle farming by 2030, ensuring that forests are used sustainably.
- Corredor Seco, ecosystem-based adaptation and innovative financial mechanisms to increase resilience to extreme climate events.
- Regional electricity market reinforcement and its dedicated transmission line as well as critical national transmission infrastructure.
Support measures
Measures in favour of civil society will be taken aiming to strengthen civil society organisations, especially at the local level, which remains one of the EU’s priorities in its relations with Guatemala. This support will be provided to improve access to information and the participation of citizens and civil society organisations aiming at supporting the development of a lively, active civil society.