Growing Cost of Insecurity in Guatemala
Friday, March 18, 2016
Companies have to allocate up to 15% of expenses to security services, as a result of the growing violence in the country.
A company wishing to operate in Guatemala has to allocate between 8 to 15% of its expenses to security in order to keep operating. The figure was provided by Victor Guillen, manager of purchases, imports and exports at Dagas, and published by, who revealed that his company earmarked Q250 thousand ($32,000) per month for the security of its plants, trucks and workers.

See also: "Criminal Extortion in Guatemala"

"... Due to the inefficiency of state in security this investment is necessary because otherwise the losses from incidents would be much higher than the cost invested in that area , " said Guillen.According to the Global Peace Index 2015, Guatemala invested $11.5 billion in measures related to containing violence. This represents 10% of gross domestic product (GDP) ".

See also: "Guatemala: Extorsion Crimes Increase"

The other big blow to the competitiveness of companies in the country is smuggling. "... The President of the Foreign Security Council (OSAC), Servio Camey, revealed that Guatemala has a monetary impact of Q5 billion ($646 million) a year in unpaid taxes from sales and jobs.The average figure includes tax revenue not received, and the security cost paid by companies ".
More on this topic
El Salvador: Growing Industrial Unrest Due to Insecurity
March 2016
Businessmen have stated their categorical opposition to statements made by a government official that confuse extortion with the funding of organized crime.
The statements by the Technical Secretary of the Presidency of El Salvador, Roberto Lorenzana, against companies in the country that suffer from extortion caused a strong reaction from the private sector, four days after Industrias La Constancia publicly announced that it was suspending operation of its plants because of increasing insecurity and violence.
Perception of Safety by Businesses in El Salvador
May 2013
A survey of Salvadoran entrepreneurs reveals that during 2012, 66% of their companies or their staff were affected up to twice by extortion, kidnapping and murder.
The Survey ENADE 2013 assesses businesses' perception of the performance of government officials, in public safety, fiscal policy and democratic institutions.
What Guatemalan Businessmen Think
April 2011
Results of the 48th Guatemalan Business Survey done by the Association for Research and Social Studies (ASIES).
Executive Summary
High Crime Rates Halt Investment
April 2009
Even though Panama is not the country in Central America most affected by crime and violence, there is already a warning about the cost of rising insecurity.
Panamanian companies are seeing an increase in their security costs and they are starting to worry about the consequences on the investment climate in the country, especially the possible decline in tourism.
Key entities
Servio Camey Consejo de Seguridad en el Extranjero Víctor Guillén
Public safety
citizen insecurity
Public safety
organized crime
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