Guatemala has a long track record of cautious macroeconomic policies even during periods of political uncertainty, such as last year's presidential election and power transition. We expect the sovereign to increase infrastructure spending to boost its still-moderate medium-term economic growth prospects, while keeping manageable fiscal deficits and very low debt burden. We revised our outlook to positive from stable and affirmed our 'BB/B' sovereign credit ratings on Guatemala. The positive outlook indicates that we could upgrade the sovereign if it maintains cautious macroeconomic policies, despite weak institutions and episodes of political uncertainty. On April 18, 2024, S&P Global Ratings revised its outlook on its 'BB' long-term foreign currency and local currency sovereign credit ratings on Guatemala to positive from stable.
