Except for the south coastal area, and the vast lowlands of the Peten in the north, Guatemala is mountainous, with a hot tropical climate – more temperate in the highlands, and drier in the easternmost departments. All of the major cities are situated in the southern half of the country; the major cities are the capital Guatemala City, Quetzaltenango and Escuintla. The largest lake Lago de Izabal is situated close to the Caribbean coast. Guatemala's location on the Atlantic Ocean has left it a target for hurricanes, including Hurricane Mitch in 1998 and Hurricane Stan in 2005, in which upwards of 1,500 died.

The agricultural sector accounts for one quarter of GDP, two-thirds of exports, and half of the labor force. Coffee, sugar, and bananas are the main products. Manufacturing and construction account for one-fifth of GDP.

The signing of the peace accords in December 1996, which ended 36 years of civil war, removed a major obstacle to foreign investment. In 1998, Hurricane Mitch caused relatively little damage to Guatemala compared to its neighbors.

Remaining challenges include beefing up government revenues, negotiating further assistance from international donors, and increasing the efficiency and openness of both government and private financial operations.

In 2005, after massive street protests, Guatemala's congress ratified the Dominican Republic - Central American Free Trade Agreement (DR-CAFTA) between several Central American nations and the U.S.. However, owing to the extensive damage and economic impacts caused by Hurricane Stan in October 2005, the government is in period of stand-by analysis and acceptance as it contemplates how it will be possible to implement the mechanisms and stipulations of the DR-CAFTA by the due starting date in February of 2006.

Although the official language is Spanish, it is not universally understood among the indigenous population; 23 distinct Mayan languages are still spoken, especially in rural areas.

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).

Source: Wikipedia