Guatemala Poverty and Equity Assessment : Reclaiming the Path Toward Shared Prosperity - Executive Summary

Overview & Synopsis

This report examines poverty and equity trends in Guatemala from 2014 to 2023, highlighting the country’s strong macroeconomic stability alongside persistent poverty, inequality, and social exclusion. Despite steady economic growth, low public debt, and controlled inflation, structural challenges such as weak human capital, labor market segmentation, limited formal employment opportunities, governance weaknesses, and vulnerability to climate-related shocks continue to constrain inclusive development. Indigenous, rural, and poor populations face unequal access to services, land, and economic opportunities, contributing to poor social outcomes and high emigration. The report analyzes the key drivers of poverty and inequality, identifies binding constraints to improving livelihoods, and proposes feasible, cost-effective policy actions to strengthen human capital, create quality jobs, enhance resilience to climate risks, and support shared prosperity in Guatemala.