Guatemala, a land where ancient Mayan temples pierce through lush rainforest canopies, stands at a critical crossroads. Since 2000, Central America’s most populous nation has achieved noteworthy economic growth, boasting the region’s largest economy. According to the World Bank, Guatemala’s GDP was an estimated $108.9 billion. Yet beneath these statistics lies a paradox: for millions of Guatemalans, extreme poverty continues to define daily life. A 2023 national survey reported that 56% of the population lives in poverty, with about 10% surviving on $2.15 or less per person. Despite recent growth, the poverty rate has only dropped by about 3.3%.

The Human Face of Economic Disparity

Guatemala’s poverty shows up in the highest rate of childhood malnutrition in Latin America, limited access to clean water and unequal access to education. Conditions are especially severe for Indigenous communities, particularly descendants of the Maya. According to data from the United Nations (U.N.), approximately 80% of Guatemala’s indigenous people live in some form of poverty; in other words, four out of five people.

In rural villages, residents often lack sanitation, infrastructure and health care. In 44% of rural municipalities, at least three-quarters of residents live below the poverty line. These areas have historically received fewer services than cities like Guatemala City. Structural barriers—such as limited access to skilled jobs or land ownership—have made upward mobility difficult.

Very few of those in extreme poverty have access to sewage systems. Around half of Guatemala’s children are malnourished. In rural areas, the poverty rate stands at 66.3%, compared to about one-third in urban areas. These numbers point to a generational crisis where children grow up without the nutrition or resources to escape poverty.

Disasters and the Cost of Inaction

During the COVID-19 pandemic, Hurricanes Eta and Iota destroyed more than 130,000 hectares of crops, pushing 1.8 million more people into food insecurity. Guatemala sits in the Dry Corridor, where erratic rainfall causes frequent crop failures. The U.N. reported in 2020 that more than 80% of families in this region struggled to meet basic food needs, which has led to a reliance on international food relief and an exodus into Mexico. In 2018, Volcán de Fuego, an active stratovolcano 18 km west of the city of Antigua, erupted, killing more than 200 people and destroying villages. About 43% of farmers in the region lost use of their land.

Corruption and Lack of Investment

Government responses often fall short. Corruption diverts resources away from those in need. Guatemala spends less of its GDP on social services than nearly every other country in the region. Public investment is low and the country has one of the weakest capacities to collect and use revenue for development. A 2014 World Bank report concluded that the country is at the bottom in public spending and ability to mobilize investment.

Faith-Based and International Aid

In many rural areas, churches and nonprofits fill gaps left by the state. Since 2014, Catholic Relief Services (CRS), funded in part by USAID, has distributed more than 40 million school meals through its Aprendizaje para la Vida program. During COVID-19, CRS and Caritas provided meals to 47,000 children in Totonicapán and offered classes to parents on how to prepare nutritious meals. Faith-based organizations also run mobile clinics, build homes and distribute drought-resistant seeds. Programs like Corredor Seco help improve access to clean water and food. NGOs such as Action Against Hunger and Fundación Genesis Empresarial work with the U.N. Food Programme to support local communities.

Looking Ahead

Nearly half the population continues to live in poverty without reliable access to essential services. Guatemala’s path forward depends on systemic reform, stronger governance and continued support from international partners. With collaboration, targeted investment and inclusive policies, there could be a way to break Guatemala’s poverty cycle.

– Max Marcello

Max is based in Pittsburgh, PA, USA and focuses on Business and Politics for The Borgen Project.

Photo: Flickr