He was sworn-in on January 14 and named a significant number of business leaders to economic portfolios. Early indications are that the government plans to pursue further liberalization and emphasize infrastructure development. A major challenge for the new government, on which it has indicated plans to move rapidly, will be to complete the peace process bringing to an end the 35-year long civil war. Four accords have been signed and a fifth with important economic implications is under negotiation. Agriculture and commerce each contribute about 25 percent of GDP, manufacturing adds 15 percent and government activity 12 percent.
Tourism is Guatemala's second largest earner of foreign exchange.
On the strength of tight monetary policy, inflation has been kept in check since 1991 and was estimated to have been under 10 percent in 1995. Guatemala became a member of the World Trade Organization on July 21, 1995. Exchange Rate Policy Guatemala has an open, relatively undistorted exchange regime. The Bank of Guatemala intervenes only infrequently to dampen speculation. There are no legal or other constraints on remittances or other capital flows.