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Guatemala and Mexico, reflections and economics

Afterwards we went to a restaurant in the Roma neighborhood, in downtown Mexico City. The restaurant looked expensive and there was a long line to get in. The host told us there was a 20-minute waiting break.

We looked at the dishes and everything looked delicious. We finally went in and ordered dishes we had never eaten before because here in Guatemala they are hard to find or very expensive.

When we asked for the bill we spent almost 1,600 pesos which sums up to Q600 and I have to say that we ate very well. Afterwards I commented to my friend that if we had eaten what we ate in Guatemala we would have spent between Q1,200 to Q1,500 quetzales. How is that possible?

The answer, although extensive, told me that some governments had a state policy of managing abundance and for a time they opened their economies and competed. Of course, now they are back to that closed economy. I insist that the answer is very extensive, but in broad strokes and with two ideas, this was what benefited them the most.

I can also say that going to Mexico being from Guatemala has its advantages for spending, but if you get a salary as a Mexican, things don’t look so good. I think that as Guatemalans and the economy is so closed, inflation hits harder. Guatemala is the second most expensive city in Latin America to live in and the 69th most expensive in the world according to El Economista.

What will it take for Guatemala to be one of the cheapest cities to live in? Or do we want to keep moving up the list?

Read the first part

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