An international organization is preparing a study that will guide the types of investments that can be established across the industrial zone of the department of Escuintla, Guatemala whose proximity to Puerto Quetzal gives it a strategic position within the country. The Organization for Economic Cooperation and Development (OECD) confirmed that, over the next nine months, it will conduct a study to analyze the potential of Escuintla for economic development. According to the Local Competitiveness Index, calculated by Fundesa, progress in Escuintla has led to a leap in per capita income from US$1,300 in 2022 to 2023, marking a significant growth rate compared to the average increase in other municipalities.
According to Juan Vázquez Zamora, Deputy Head for Latin America and the Caribbean at the OECD Development Centre, this study aims to analyze the potential of Escuintla to attract quality investments that can generate employment and social inclusion based on data. Vázquez also stated that the study could help explore how to attract more human talent and tourism to the department. As a foundation, the study will consider the industrial parks in the area, which, according to Vázquez, are examples of promoters of progress in Escuintla.
In a document published by Pronacom in November 2023, titled “Industrial Parks,” it was noted that as of January of that year, there were sixteen industrial parks in the country, four of which are in Escuintla. According to Pronacom, the Department of Escuintla is a strategic point due to its proximity to Puerto Quetzal. However, Christian Mayorga, President of the Trade and Industry Zone of Santo Tomás de Castilla (Zolic), added during an investment attraction event organized by Fundesa on October 22 that Escuintla now has eight industrial parks authorized by Zolic. “Several of them are operational, while others are still under construction,” said Mayorga, underscoring the ongoing progress in Escuintla.
The analysis results will be shared with both the private and public sectors, Vázquez assured, noting that while this work is ongoing, communication will continue with the various stakeholders involved in this matter, including country visits. The study will further emphasize the connection between increased investment and the evident progress in Escuintla, highlighting how industrial growth drives regional development.
Competitiveness in Escuintla
In 2023, Escuintla scored ninety-three points in the labor market area of the Local Competitiveness Index. However, it only obtained thirty-three points in the area of productive investment. Additionally, the same year saw a positive change in its GDP per capita, increasing from US$9,300 to US$10,130. Other departments categorized as intermediate cities had lower per capita GDPs. Puerto Barrios recorded a per capita GDP of US$6,917, while Antigua Guatemala registered US$4,649. This economic surge is seen as part of the broader progress in Escuintla, attracting national and international attention for its industrial and investment potential.
The President of Zolic mentioned that more than 5 million square meters have already been approved for operations. Mayorga noted that this reflects a trend in the private sector, with economic dynamics shifting toward the country’s south in the short and medium term. He emphasized that the country’s industrial parks are privately owned. The four industrial parks mentioned by Pronacom are Mauricio Pacífico, Michatoya Pacífico, Scali Centroamericana, and Zona Libre Quetzal, all of which are critical contributors to progress in Escuintla.
The executive added that investments have also been made in other areas, such as San Marcos, where the Puerta del Istmo industrial park is adjacent to the border with Mexico. This is where the first major foreign investment operation for vehicle parts occurs. However, Mayorga pointed out that coordination is the main challenge to attracting more investment in regions like Escuintla and across the country. “We would achieve much better results if we worked together and followed a common strategy,” said Mayorga, who emphasized that Guatemala has significant advantages, including macroeconomic stability and a dynamic private sector. Addressing these coordination challenges is vital to sustaining the progress in Escuintla and beyond.
Challenges and Solutions
During the same event, Carmen María Torrebiarte, President of the Coordinating Committee of Agricultural, Commercial, Industrial, and Financial Associations (CACIF), stated that for proper development in the country, it is necessary to have public policies aligned with the private sector. According to Torrebiarte, these two sectors are not necessarily coordinated. Ruby Asturias, Partner of Financial and Legal Advisory at Deloitte, added that a critical problem is the lack of strategic clarity regarding the types of investments to attract. This lack of alignment risks maintaining the current progress in Escuintla and ensuring its continued development.
Meanwhile, Jorge Ayala, President of the Economic Commission of the Congress of the Republic, discussed the advancement of the Priority Road Infrastructure Law and the Public-Private Partnerships Law. The former aims to prioritize approximately 10% of the total kilometers of the country’s road network. At the same time, the latter, which Ayala hopes will be approved this year, seeks to expand the portfolio of projects that can be carried out through public-private partnerships. These legislative advancements are expected to further strengthen progress in Escuintla by improving infrastructure and making the region even more attractive to investors.
Conclusion
The Escuintla, Guatemala, department is experiencing significant industrial growth, with eight authorized industrial parks strategically positioned near Puerto Quetzal. The Organization for Economic Cooperation and Development (OECD) is conducting a study to assess Escuintla’s potential for attracting quality investments and promoting social inclusion. The department has seen a rise in per capita income, from US$1,300 in 2022 to US$10,130 in 2023, and now hosts more than 5 million square meters of industrial development. Key industrial parks include Mauricio Pacífico, Michatoya Pacífico, Scali Centroamericana, and Zona Libre Quetzal. Despite this progress in Escuintla, challenges remain, such as better coordination between public and private sectors, with stakeholders like Zolic’s President Christian Mayorga and CACIF’s President Carmen María Torrebiarte advocating for aligned policies and strategies. Additionally, legislative advancements like the Priority Road Infrastructure Law and the Public-Private Partnerships Law aim to enhance infrastructure, which could further boost investment opportunities. While the private sector is dynamic and the country enjoys macroeconomic stability, strategic investment clarity remains critical for sustained development in Escuintla and Guatemala.