Government Type: constitutional democratic republic

Capital: Guatemala City Geographic Coordinates: 14 37 N, 90 31 W

Independence: 15 September 1821 (from Spain)

National holiday: Independence Day, 15 September (1821)

Constitution: 31 May 1985, effective 14 January 1986; suspended 25 May 1993; reinstated 5 June 1993; amended November 1993

Legal system: civil law system; judicial review of legislative acts; has not accepted compulsory ICJ jurisdiction

Suffrage: 18 years of age; universal; note - active duty members of the armed forces may not vote and are restricted to their barracks on election day

Economy Overview: Guatemala is the most populous of the Central American countries with a GDP per capita roughly one-half that of the average for Latin America and the Caribbean. The agricultural sector accounts for nearly 15% of GDP and half of the labor force; key agricultural exports include coffee, sugar, and bananas. The 1996 peace accords, which ended 36 years of civil war, removed a major obstacle to foreign investment, and since then Guatemala has pursued important reforms and macroeconomic stabilization. The Central American Free Trade Agreement (CAFTA) entered into force in July 2006 spurring increased investment and diversification of exports, with the largest increases in ethanol and non-traditional agricultural exports. While CAFTA has helped improve the investment climate, concerns over security, the lack of skilled workers and poor infrastructure continue to hamper foreign direct investment. The distribution of income remains highly unequal with the richest decile comprising over 40% of Guatemala's overall consumption. More than half of the population is below the national poverty line and 15% lives in extreme poverty. Poverty among indigenous groups, which make up 38% of the population, averages 76% and extreme poverty rises to 28%. 43% of children under five are chronically malnourished, one of the highest malnutrition rates in the world. President COLOM entered into office with the promise to increase education, healthcare, and rural development, and in April 2008 he inaugurated a conditional cash transfer program, modeled after programs in Brazil and Mexico, that provide financial incentives for poor families to keep their children in school and get regular health check-ups. Given Guatemala's large expatriate community in the United States, it is the top remittance recipient in Central America, with inflows serving as a primary source of foreign income equivalent to nearly two-thirds of exports. The economy contracted in 2009 as export demand from US and other Central American markets fell and foreign investment slowed amid the global recession. The economy will likely recover gradually in 2010 and return to more normal growth rates by 2012.

International Disputes: annual ministerial meetings under the OAS-initiated Agreement on the Framework for Negotiations and Confidence Building Measures continue to address Guatemalan land and maritime claims in Belize and the Caribbean Sea; the Line of Adjacency created under the 2002 Differendum serves in lieu of the contiguous international boundary to control squatting in the sparsely inhabited rain forests of Belize's border region; Mexico must deal with thousands of impoverished Guatemalans and other Central Americans who cross the porous border looking for work in Mexico and the United States