Guatemala Construction Market Size (2024 - 2029)

Guatemala Construction Market Analysis

The Guatemala Construction Market size is estimated at USD 3.5 billion in 2024, and is expected to reach USD 5.10 billion by 2029, growing at a CAGR of 7.87% during the forecast period (2024-2029).

• Although the Guatemalan economy had weathered the inflation shock better than its neighbors in 2022, higher energy prices had impacted domestic consumption significantly, constituting 85% of GDP in 2022. Economic activity was expected to remain resilient in 2023 despite the deterioration in US economic conditions. Firstly, declining remittances from the United States (30% of household disposable income and 16% of GDP in 2022) and import inflation (just above the central bank's 4% target) did not reduce domestic consumption.
• The expansion of fuel, food, and electricity subsidies for households (0.8% of GDP in 2022) certainly sustained them, resulting in a projected growth in spending of 2.6% in 2023 compared to 2.4% in 2022. Secondly, investment was expected to slow slightly.
• Public investments under the National Long-Term Development Strategic Plan for 2022-2024 focus on infrastructure development to combat climate change, with the aim of benefiting the construction sector.
• Many Government Regulations and initiatives, Mergers and acquisitions, and Technical Advancements in the construction sector have been fuelling the market growth in Guatemala country. For instance, to support a sustainable and inclusive medium-term growth model with higher growth potential, the government will strengthen the implementation of transformative infrastructure agendas, promote human capital and social policies, and ensure legal certainty.
• It is essential to strengthen, although the global outlook is challenging, the current economy also offers ample opportunities to push ahead with reforms to take advantage of demographic dividends, improve the business environment, and attract foreign investment. Fiscal policy lines should remain cautious in the medium-term (MT) Strategies that include growth-enhancing fiscal sustainability goals. Receive Increased tax revenues needed to fund the country's structural needs. Managing heavy investments in infrastructure, human capital, and social needs requires process streamlining. A clear communication strategy should accompany larger bond issuances to fund this need.
• Investment in large-scale infrastructure projects is one of the key strategies of Guatemala to fuel economic growth. The government's effort to improve the country's infrastructure to sustain growth in the manufacturing sector and expand municipal utilities will contribute to the growth in construction spending. Rising personal income levels, household growth, and population migration from rural to urban areas will augment the need for better construction facilities and road infrastructure developments in the country.
• Increasing public investments in Guatemala’s commercial construction sectors will be a key market opportunity for the companies operating in the construction and infrastructure industry. The presence of a huge customer base is resulting in strong FDI (foreign direct investment) inflows into the country. Further, increasing investments in real estate and infrastructure sectors result in the growth of construction activities.

Guatemala Construction Industry Segmentation

Construction is the installation, maintenance, and repair of buildings and other stationary structures, as well as the construction of roadways and service facilities that form fundamental components of structures and are required for their operation.

The Guatemala construction market is segmented by type (residential construction, commercial construction, industrial construction, institutional construction, infrastructure construction, and energy and utility construction). 

The report offers market sizes and forecasts for the Guatemala construction market in value (USD) for all the above segments.