Executive Summary
The perception of businessmen shows the challenges of economic recovery. The balanced opinion in production, income and employment variables indicate greater optimism. Also, there is greater optimism over the coming months. Nevertheless, there is risk for such a trend to be unfounded, considering the complex conditions of international markets and fuel prices.
Sales prices and costs of financial variables which summarize the market. The perception of businessmen regarding the two major financial variables is optimistic, a sign entrepreneurs have gradually been able to obtain better revenues from products sold. The majority (57%), indicated that inter-annual costs were higher and also consider an increase of the same variables over the next six months.
Insecurity affects worker productivity. On previous occasions, businessmen said they have hired private security guards and incurred into other expenses in order to deal with the climate of insecurity (installation of fences, security cameras, etc.). This expenditure is equivalent to 13% of their total costs, expenses which could become more productive if they were used on investments.
Security is necessary in any business because crime in the country is high, over the last three months 15% of companies have suffered property damage, 19% report extortion and 24% has been a victim of theft.
But what concerns the most is that 43% of employers stated that their workers have been victimized by violence. Businessmen do not have many options to avoid the situation, affecting worker productivity. Due to these reasons, 7 out of 10 businessmen consider the issue of public safety to be the toughest task to address for the next administration.
More on this topic
June 2011
A survey by the Guatemalan Chamber of Commerce reveals that 89% of businessmen perceive an increase in insecurity.
Of a total of 1,206 employers surveyed between May 26 and June 3, 82.3% indicated that insecurity has risen by 20% in the first five months of 2011.
"Jorge Briz, chairman of the Chamber, announced the results of the report yesterday, in which 75.24 percent of employers reported - either themselves, an employee or a family member - having been victim of crime", noted an article by Sandra Valdez in Prensalibre.com
July 2010
A survey by the Guatemalan Commerce Chamber revealed that 49.2% more companies were victims of extortion this semester.
The survey also found that 41.3% of the Chamber’s members have been targets of extortion practices, while 60% believes the Government “is doing nothing” to solve the situation.
February 2010
Easier government procedures, security, sufficient energy, linking education with development, infrastructure and modern labor laws.
UCCAEP, the Union of Costa Rican Private Enterprise Chambers and Associations, submitted president-elect Laura Chinchilla a list of 10 things they consider crucial for the country to move forward:
September 2011
In El Salvador, where the cost of insecurity is equivalent to 12% of GDP, extortion is the main obstacle to economic development.
Crime affecting the country stops economic development and investment, according to the technical secretary of the Presidency, Alex Segovia.
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