Guatemala Infrastructure Report Q2 2016

BMI Industry View

Table: Infrastructure - Construction Industry Forecasts (Guatemala 2015-2021)

Table: Infrastructure Risk/Reward Index (Guatemala)

SWOT

Infrastructure SWOT

Industry Forecast

Guatemala - Construction: Corruption Scandal Fallout Will See Multi-Year Weakness

Table: Construction Industry Forecast (Guatemala 2015-2025)

Industry Risk Reward Ratings

Latin America Industry Risk/Reward Index

Table: Latin America Infrastructure Risk/Reward Index

Methodology

Industry Forecast Methodology

Sector-Specific Methodology

Risk/Reward Index Methodology

Sector-Specific Methodology

Table: Infrastructure Risk/Reward Index Indicators

Table: Weighting Of Indicators

Guatemala Infrastructure Report Q2 2016

BMI View: Guatemala's infrastructure industry will slow in 2016 as the fallout from the corruption scandalsurrounding former president Otto Pérez Molina continues to weigh on public sector capacity and investorsentiment. Growth will remain muted in 2017 as the new president, Jimmy Morales, lacks the experienceand political support to quickly pass reforms.

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Corruption and the political uncertainty surrounding the departure of Pérez Molina will continue to weighon construction industry growth.

We expect growth to slow to 1.8% in real terms in 2016, and remain muted in 2017, before beginning aslow recovery.

Much-needed reforms will not be implemented quickly as the new president, Jimmy Morales, lacks thelegislative support and political experience to push measures through.