A year into president Jimmy Morales’s mandate, Guatemala’s economic woes persist. Michael Deibert reports.

A volatile political climate, which has seen the arrest and resignation of the country's president this year, and overspill from the Mexican drug wars continue to prevent Guatemala from achieving the development goals it set for itself two years ago.

The economy minister of Guatemala tells fDi how his ambitious plans to transform the country's economy into one of the most competitive in Latin America are already bearing fruit, with major infrastructure and energy projects leading the way.

If the unprecedented turnout at the Guatemala Investment Summit 2013 is anything to go by, the country's FDI prospects have never been better. But, deep-rooted political divides and high rates of violent crime still threaten to overshadow the country's potential.

Guatemala may not be enjoying the same sort of economic success as many of its Latin American counterparts, but the country's minister of foreign affairs, Fernando Carrera, explains how this will change as it works on increasing its security and regulation, while strengthening its relationships with its neighbours to the north and south

As the capacity for embassies and diplomats to target and attract investment grows, countries are becoming increasingly eager to restructure their operations in a bid to best utilise these new promotional agents.

With the country's FDI inflows decreasing in 2011, Guatemala is looking to target the business processing outsourcing sector in 2012.

In the 15 years of stability since the end of its bloody civil war, Guatemala has become a popular destination for foreign investors looking for a route into Central America. However, outbreaks of violence in the run up to a general election later this year are threatening the country's hard-won reputation as one of the FDI world's rising stars.