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.
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.
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