Guatemala was freed of Spanish colonial rule in 1821. During the second half of the 20th century, it experienced a variety of military and civilian governments as well as a 36-year guerrilla war. In 1996, the government signed a peace agreement formally ending the conflict, which had led to the death of more than 100,000 people and had created some 1 million refugees.

PEOPLE
More than half of Guatemalans are descendants of indigenous Mayan peoples. Westernized Mayans and mestizos (mixed European and indigenous ancestry) are known as Ladinos. Most of Guatemala's population is rural, though urbanization is accelerating. The predominant religion is Roman Catholicism, into which many indigenous Guatemalans have incorporated traditional forms of worship. Protestantism and traditional Mayan religions are practiced by an estimated 40% and 1% of the population, respectively.

Though the official language is Spanish, it is not universally understood among the indigenous population. However, the Peace Accords signed in December 1996 provide for the translation of some official documents and voting materials into several indigenous languages (see summary of main substantive accords).

HISTORY
The Mayan civilization flourished throughout much of Guatemala and the surrounding region long before the Spanish arrived, but it was already in decline when the Mayans were defeated by Pedro de Alvarado in 1523-24. During Spanish colonial rule, most of Central America came under the control of the Captaincy General of Guatemala.

The first colonial capital, Ciudad Vieja, was ruined by floods and an earthquake in 1542. Survivors founded Antigua, the second capital, in 1543. In the 17th century, Antigua became one of the richest capitals in the New World. Always vulnerable to volcanic eruptions, floods, and earthquakes, Antigua was destroyed by two earthquakes in 1773, but the remnants of its Spanish colonial architecture have been preserved as a national monument. The third capital, Guatemala City, was founded in 1776, after Antigua was abandoned.

Guatemala gained independence from Spain on September 15, 1821; it briefly became part of the Mexican Empire and then for a period belonged to a federation called the United Provinces of Central America. From the mid-19th century until the mid-1980s, the country passed through a series of dictatorships, insurgencies (particularly beginning in the 1960s), coups, and stretches of military rule with only occasional periods of representative government.
ECONOMY
Guatemala's GDP for 2001 was estimated at $ 20.0 billion, with real growth slowing to approximately 2.3%. After the signing of the final peace accord in December 1996, Guatemala was well-positioned for rapid economic growth over the next several years, though a financial crisis in 1998 limited its ability to achieve its potential growth rates.

Guatemala's economy is dominated by the private sector, which generates about 85% of GDP. Agriculture contributes 23% of GDP and accounts for 75% of exports. Most manufacturing is light assembly and food processing, geared to the domestic, U.S., and Central American markets. Over the past several years, tourism and exports of textiles, apparel, and nontraditional agricultural products such as winter vegetables, fruit, and cut flowers have boomed, while more traditional exports such as sugar, bananas, and coffee continue to represent a large share of the export market. Because of Guatemala's continued reliance on coffee exports, the recent downturn in world prices has contributed to Guatemala's relatively slow growth over the past 2 years.

ECONOMY
Guatemala's GDP for 2001 was estimated at $ 20.0 billion, with real growth slowing to approximately 2.3%. After the signing of the final peace accord in December 1996, Guatemala was well-positioned for rapid economic growth over the next several years, though a financial crisis in 1998 limited its ability to achieve its potential growth rates.

Guatemala's economy is dominated by the private sector, which generates about 85% of GDP. Agriculture contributes 23% of GDP and accounts for 75% of exports. Most manufacturing is light assembly and food processing, geared to the domestic, U.S., and Central American markets. Over the past several years, tourism and exports of textiles, apparel, and nontraditional agricultural products such as winter vegetables, fruit, and cut flowers have boomed, while more traditional exports such as sugar, bananas, and coffee continue to represent a large share of the export market. Because of Guatemala's continued reliance on coffee exports, the recent downturn in world prices has contributed to Guatemala's relatively slow growth over the past 2 years.

U.S.-GUATEMALAN RELATIONS
Relations between the United States and Guatemala traditionally have been close, although at times strained by human rights and civil/military issues. U.S. policy objectives in Guatemala include:

• Supporting the institutionalization of democracy and implementation of the peace accords;
• Encouraging respect for human rights and the rule of law;
• Supporting broad-based economic growth and sustainable development and maintaining mutually beneficial trade and commercial relations;
• Cooperating to combat narcotics trafficking, alien-smuggling, and other transnational crime; and
• Supporting Central American integration through support for resolution of border/territorial disputes.

The United States, as a member of "the Friends of Guatemala," along with Colombia, Mexico, Spain, Norway, and Venezuela, played an important role in the UN-moderated Peace Accords, providing public and behind-the-scenes support. The U.S. strongly supports the six substantive and three procedural accords, which, along with the signing of the December 29, 1996 final accord, form the blueprint for profound political, economic, and social change. To that end, the U.S. Government has committed more than $260 million to support peace implementation since 1997.
Although almost all of the 180,000 U.S. tourists who visit Guatemala annually do so without incident, in recent years the number of violent crime reported by U.S. citizens has steadily increased. Increases in the number of Americans reported as victims of violent crime may be the result of any combination of factors: increased numbers of Americans traveling to Guatemala; increased accuracy in the embassy's reporting of crime; more Americans traveling to higher risk areas of Guatemala; or more crime.

Full country name: Republic of Guatemala
Area: 109,000 sq km (42,500 sq mi)
Population: 12.6 million (growth rate 2.6%)
Capital city: Guatemala City (pop 2 million)
People: 56% mestizo/ladino descent, 44% Mayan descent
Language: Spanish, Garífuna and 21 Mayan languages
Religion: Roman Catholic, Pentecostal, Mayan-Catholic fusion
Government: Democratic
President: Oscar Berger
GDP: US$47.9 billion
GDP per head: US$3,900
Inflation: 6.8%
Major industries: Coffee, sugar, bananas, textiles and clothing, furniture, chemicals, petroleum, metals, natural rubber, flowers, cardamom, tourism
Major trading partners: USA, El Salvador, Costa Rica, Honduras, Germany, Mexico, Venezuela, Japan