Meat Industry and Agriculture Driving Paraguay’s Economy, Potential for More Growth Over Next Decade
The cattle farming industry and agriculture are the principle drivers of Paraguay’s economy and investors in and outside the country are looking to leverage the potential for increased revenue in these sectors. The country has a plentiful supply of high-quality agriculture land in addition to a massive potential for organic agriculture. In fact, Paraguay is the world’s largest exporter of organic sugar.
The potential is tangible. Today, it is estimated that there are some 4.5 million hectares utilized by the mechanized cereal agriculture industry, but it is estimated that in the next decade as much as a further 80 percent more fields could be put to use. It’s also estimated that Paraguay has the potential to become one of the leading exporters of meat. It is also a leading player in the renewable energy sector, being the global number one exporter of renewable energy.
What makes Paraguay so attractive? It has no net debt, and boasts a net cash-to-GDP ratio of 11.3 percent, which is an extraordinary achievement. Paraguay also attracts international firms to invest in Paraguay thanks to its attractive tax environment. This includes no restrictions on capital investments and capital movements, VAT and corporation tax rates of 10 percent, and a benign approach to FDIs.