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.