Guatemala is the biggest economy in Central America but retains high poverty and inequality rates. Despite ongoing political and security challenges as well as high levels of corruption, GDP growth outlook this year is generally positive. Low diversification of the economy, Guatemala’s net oil and foodstuff importer status and dependence on remittances from the US together increase the country’s vulnerability to external shocks. Guatemala’s membership in the Central America - United States Free Trade Agreement and its trade agreements with Mexico and Panama have integrated it into the regional economy. Canada and Guatemala also have an established trade relationship.