Guatemala's Economy Boosted by 4% Investment Increase, Resilient to Macro Shocks
The researchers built a computer model to understand how different policies and economic changes could impact Guatemala. They focused on boosting regional investments and tackling macroeconomic challenges. The model is unique because it considers factors like short-term unemployment and regional sectors, especially agriculture. By simulating what would happen if more investments were made, they found that increasing funding could lead to a stronger economy. They also discovered that when the economy faces sudden problems, like external shocks, it adjusts over time by changing how much it sells abroad and what it produces. This study helps us see how Guatemala could grow by investing more and adapting to unexpected changes in the global economy.