Walmart's Central America president announced on Wednesday that the company intends to invest almost $700 million in Guatemala over the next five years. (Photo : by ROBYN BECK/AFP via Getty Images)
Walmart's Central America president announced on Wednesday that the company intends to invest almost $700 million in Guatemala over the next five years.
Cristina Ronski, a regional executive, made the news at the nation of Central America's shop groundbreaking.
It happened only a few days after the business announced that it would spend around $600 million in Costa Rica over the following five years during the launching of a new distribution facility.
In Guatemala, Nicaragua, and Honduras, Walmex, the name of Walmart's division for Mexico and Central America, recorded double-digit same-store sales increase in the first quarter. During the quarter, Costa Rica saw low- to mid-single-digit growth.
USAID and Walmart
USAID has also been in partnership with Walmart Mexico and Walmart Central American since 2002 that aims to increase economic opportunities in Guatemala and reduce poverty by empowering women-led small businesses. It is focused on creating more jobs, expanding markets for goods produces in Guatemala, and making business more inclusive and accessible to all people.
Walmart is among the top 40 corporate partners of USAID and has worked with Walmart in Latin America and the Caribbean. They have provided training and granted financial support and market opportunities to small-scale farmers, women, at-risk youth and local entrepreneurs. They also launched the "Women's Economic Empowerment Initiative" in 2011.
Guatemala's economy has improved as a result of these promises, but in the years to come, several fundamental issues will still need to be resolved. For example, the majority of people in Guatemala are under 25, making up almost 60% of the country's total population. The country is quickly becoming more urbanized, with over half of the people living in urban areas; yet, there is a deficiency of infrastructure linking the various cities.
A significant number of migrants left Guatemala, Honduras, and El Salvador in 2022 and crossed the border into the United States. As a result, there is now a gap in the labor market, but Walmart and USAID are attempting to deepen their collaboration to support employment growth and the improvement of Guatemala's economy. Despite these difficulties, Guatemala's GDP is predicted to expand by 3.4% in 2022.
This figure, while by no means extreme, demonstrates that nations may achieve economic development and the alleviation of poverty through the creation of new employment, the opening up of new markets, and the investment in the next generation. Guatemala's economy will keep expanding gradually thanks to programs sponsored by Walmart Central America, USAID, and many other organizations.
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