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Paraguay Back on the Growth Track

Paraguay is seeing an economic resurgence, after seeing its GDP expanded by 15% in 2010;the fastest rate in Latin America, by the way. There are several reasons for this resurgence according to REDIEX, a division of the Paraguayan government’s Ministry for Industry. REDIEX works with other Paraguayan government departments to promote investment and exports.

Among the reasons for Paraguay’s economic growth are the following:

  • Abundant natural resources with cattle, soybeans, and sugar as leading sectors
  • Environment friendly and renewable energy, much of it hydroelectric
  • A young population open to change and willing to learn new skills
  • A new level of macro-economic stability and a low tax burden
  • Extensive advantages and incentives for foreign and domestic investment
  • Experienced rapid recovery of investment and economic growth following the drought of 2008 and subsequent additional problems caused by the world recession
  • A track record as a leading global exporter of soybeans and meat products, with high productivity and a high level of capacity for expansion
  • An excellent geographical location in the centre of South America, with free access to the MERCOSUR economic union of Argentina, Brazil, Paraguay and Uruguay
  • Excellent communications via waterways
  • A new reputation as a comparatively peaceful and stable country

Paraguay is back on track, with many investors looking at investing in their agricultural (soy and sugar), renewable energy, cattle and other industries.