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Accounting for 40% of Guatemala's total GDP (USD27 billion out of USD68 billion in 2016), Guatemala City is the country's economic powerhouse. Over 2011-2016, the capital saw growth in its GDP, disposable income and labour productivity. However, the biggest metropolitan area in Central America of 3.8 million people, faces numerous economic and social challenges such as poverty, crime, illiteracy and one of the biggest wealth inequalities in the world.
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Guatemala City is the largest urban centre in the country with a substantial concentration of the country's most value-added activities, a more educated labour force and major infrastructure assets. As a result, the metropolis was 121% more economically productive when compared to the rest of the country, in terms of GVA produced per employee in 2016.
More high value-added jobs in the city results in greater household earnings in Guatemala City than elsewhere in the country. In 2016, disposable income per household in the metropolis was 73% greater than in the rest of the country.
The city's average per household spending levels (excluding housing and transport) exceeded the average for the rest of Guatemala by 38% in 2016. Expenditure on leisure-related categories such as hotels with restaurants (55% greater expenditure in Guatemala City than in the rest of the country) and recreation (49%) reflected the most significant differences between households in Guatemala and the rest of the country in 2016.
Combined, average household spending on housing and transport in Guatemala City was 44% higher than in the rest of the country in 2016. Out of the two, transportation was more expensive in Guatemala City in comparison to the rest of country, demanding as much as 46% more spending.
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