Why did colonial Guatemala have less economic prosperity than Mexico and Peru?

Colonial Guatemala lacked the economic prosperity of Mexico and Peru primarily because it lacked the vast deposits of precious metals that fueled the economies of those regions.12

Instead of mining, the colonial Guatemalan economy relied heavily on the cultivation of agricultural staples such as cacao, indigo, and later cochineal, which were produced by slave labour or subsistence farming. Several structural factors further hindered economic development:12

• Logistical Challenges: The region never developed a satisfactory port, and internal transportation remained difficult.12
• External Threats: Shipping was frequently disrupted by pirates who harassed the coasts and preyed on commerce.12
• Isolation: Due to these pressures, the Kingdom of Guatemala often retreated into a self-sufficient, feudal-like existence.3

While Guatemala City served as an important administrative and religious center for the region, its economic reach was limited by these geographic and security constraints.12