Economy

Guatemala has one of Central America's most developed economies. Although it has important manufacturing industries, Guatemala remains a largely agricultural country. It is favored by a diverse climate and rich soils, especially the volcanic soils of the highlands. Peasant landholdings are usually small and crudely worked, but provide a livelihood, at the subsistence level, for most of the people. Corn and beans are the main crops. In contrast, commercial plantations specialize in export crops and are generally large, modern, and owned by a few people; some are foreign owned. Coffee is the leading export; cotton ranks second. Bananas, sugar, cardamom, and meat are also significant exports. Livestock consists mainly of beef cattle, sheep, and pigs.

Manufacturing is fairly well developed. Especially important is the production of textiles, beverages, petroleum products, chemicals, transport equipment, and processed foods. Guatemala's membership in the Central American Common Market greatly aided the country's manufacturing, especially during the 1960's and 1970's, by providing new markets. Guatemala City is the main manufacturing center.

Petroleum was discovered in the Petén in the 1970's; substantial production began in the early 1980's. Nickel is the only metal mined in significant amounts. Timber, marble, and shrimp also are notable Guatemalan products.

The railway system, which is largely government-owned, links both coasts and connects with lines in Mexico and El Salvador. Except for parts of the Inter-American (Pan American) Highway and several other main highways, few roads are paved. Puerto Barrios is the chief port. Guatemala City's airport serves the national carrier and a number of foreign airlines.

Guatemala's basic currency unit is the quetzal.