i,
New Orleans, New York, and San Francisco;
US--Ambassador Thomas F. STROOCK; Embassy at 7-01 Avenida de la
Reforma, Zone 10, Guatemala City (mailing address is APO Miami 34024);
telephone p502o (2) 31-15-41

Flag: three equal vertical bands of light blue (hoist side), white, and
light blue with the coat of arms centered in the white band; the coat of arms
includes a green and red quetzal (the national bird) and a scroll bearing the
inscription LIBERTAD 15 DE SEPTIEMBRE DE 1821 (the original date of
independence from Spain) all superimposed on a pair of crossed rifles and a
pair of crossed swords and framed by a wreath

- Economy
Overview: The economy is based on agriculture, which accounts for
25% of GDP, employs about 60% of the labor force, and supplies two-thirds
of exports. Industry accounts for about 20% of GDP and 15% of the labor
force. The economy has reentered a slow-growth phase, but is hampered by
political uncertainty. In 1988 the economy grew by 3.7%, the third
consecutive year of mild growth. Government economic reforms introduced
since 1986 have stabilized exchange rates and have helped to stem
inflationary pressures. The inflation rate has dropped from 36.9%
in 1986 to 15% in 1989.

GDP: $10.8 billion, per capita $1,185; real growth rate 1.3% (1989 est.)

Inflation rate (consumer prices): 15% (1989)

Unemployment rate: 13%, with 30-40% underemployment (1988 est.)

Budget: revenues $771 million; expenditures $957 million, including
capital expenditures of $188 million (1988)

Exports: $1.02 billion (f.o.b., 1988);
commodities--coffee 38%, bananas 7%, sugar 7%, cardamom 4%;
partners--US 29%, El Salvador, FRG, Costa Rica, Italy

Imports: $1.5 billion (c.i.f., 1988);
commodities--fuel and petroleum products, machinery, grain, fertilizers,
motor vehicles;
partners--US 38%, Mexico, FRG, Japan, El Salvador

External debt: $3.0 billion (December 1989 est.)

Industrial production: growth rate 3.5% (1988 est.)

Electricity: 807,000 kW capacity; 2,540 million kWh produced,
280 kWh per capita (1989)

Industries: sugar, textiles and clothing, furniture, chemicals,
petroleum, metals, rubber, tourism

Agriculture: accounts for 25% of GDP; most important sector of economy
and contributes two-thirds to export earnings; principal
crops--sugarcane, corn, bananas, coffee, beans, cardamom;
livestock--cattle, sheep, pigs, chickens; food importer

Illicit drugs: illicit producer of opium poppy and cannabi