Building the Future: Guatemala’s Strategic Push for Infrastructure that Leads to Investment

At ALD Strategic Advisory, we recognize that meaningful economic development isn’t just about numbers but strategic decisions that unlock long-term prosperity. The following posts share insights and lessons learned from last week's FUNDESA event, "Infrastructure and its effects on FDI." Guatemala is embracing this mindset, charting a bold path forward with major infrastructure upgrades and investment attraction initiatives that could reshape its economic landscape. Guatemala’s leaders and stakeholders have identified a clear opportunity to turn infrastructure investment into a catalyst for national growth.

Infrastructure First: Laying the Groundwork for Growth

The IMF highlights that increasing public capital stock by 1% of GDP can boost GDP by 0.3% in the short term and 0.8% in the medium term, underscoring the multiplier effect of infrastructure investment on economic growth. Moreover, with 56.6% of Guatemala's population residing in urban areas as of 2025, there is a pressing need for robust infrastructure to support urbanization and economic activities. 

High-quality infrastructure isn’t just a convenience. It’s a necessity. Guatemala is doubling down on this fact by prioritizing projects that modernize transportation corridors, connect communities, and boost export capacity.

Key Projects in Motion:

• CA-9 North Corridor Revamp: The Inter-American Development Bank is funding a $175 million project to widen 35 km of this vital artery. This will change the game for trade between the central highlands and the Caribbean coast.

• CA-2 East Expansion: This plan includes upgrading the highway to four lanes, connecting Guatemala’s heartland to the Pacific ports. It’s all about shortening delivery times and improving cargo flow.

  
  

These upgrades are designed not only to improve logistics, but to stimulate jobs, urban expansion, and commercial activity across departments.

Foreign Investment: Confidence Is Growing

In 2023, Guatemala attracted $1.55 billion in foreign direct investment—a 6.6% increase over 2022. The trend is upward. Recently, Walmart committed $700 million over five years to expand its operations, reflecting long-term confidence in Guatemala’s economic fundamentals.

Why Investors Are Looking to Guatemala:

• Competitive labor costs

• Strategic geographic position (between North and South America)

• Active investment in logistics infrastructure

• Policy shifts that promote regulatory transparency

Lessons from Latin America’s Best

Guatemala’s strategy doesn’t exist in a vacuum. It’s learning from regional standouts:

• Chile: Leveraged logistics infrastructure to grow exports despite a challenging geography. Chile's freight and logistics market is projected to reach USD 21.42 billion in 2025, growing at a CAGR of 5.45% to USD 27.92 billion by 2030. This growth is driven by significant investments in infrastructure and the expansion of e-commerce.

• Ecuador: Built the Port of Posorja as a cornerstone of economic expansion. Recent expansions include a $140 million project to extend the berth by 232.5 meters, enabling the port to accommodate two post-Panamax vessels simultaneously. This development has significantly enhanced Ecuador's connectivity and trade capacity

• Panama: Transformed its economy through strategically using the Panama Canal and global trade routes.

These examples prove that smart infrastructure plus investment promotion equals national transformation.

Collaboration Is Key

One of the most encouraging takeaways from the recent convening? Everyone’s invited to the table. There's growing alignment on Guatemala's path forward, from government agencies to private sector leaders and academia. This multi-sector approach ensures that economic gains are tied to workforce development, educational outcomes, and smart governance.

What’s Next?

Guatemala is ready. With projects underway, investor interest growing, and a collaborative spirit guiding the way, the country is on track to elevate its position in Latin America’s economic arena. At ALD, we’re excited to see these foundations take shape and even more excited to support leaders who want to be part of the transformation.

Looking to invest in Guatemala or support regional infrastructure initiatives?

Let’s talk. Visit us at www.aldstrategicadvisory.com