paraguay
P
araguay, one of the oldest republics in Latin
America, is located in the central zone of South
America, bordering Brazil and Bolivia to the
north, Brazil and Argentina to the east, Argentina
to the south and Argentina and Bolivia to the west.
According to the projections of the General Directorate
of Statistics, Surveys and Censuses / DGEEC (2015), it
has a population of 7.5 million. The offi cial languages
of the country are Spanish and Guaraní (taking into
account the fact that the languages of indigenous
peoples are part of the nation’s cultural heritage).
As for its dynamic with India, both countries
established relations in 1961. Paraguay opened its
Embassy in India in 2006, while India is represented
in Paraguay through its Embassy in Buenos Aires,
Argentina, while there is an Honorary Consulate in
Asunción. In 2012, Paraguayan President Fernando
Lugo visited India, becoming the fi rst Paraguayan
president to do so, while this year (2019), the Vice
President of India, M Venkaiah Naidu, visited
Paraguay (MEA, 2019). For the rest, a tiny community
of Indian emigrants resides in the country.
In the given context, this article aims to characterize
the economic dimension of Paraguay, as well as
highlight its investment landscape.
INVEST IN
PARAGUAY
ECONOMIC-COMMERCIAL
AND INVESTMENT
PANORAMA
BY LÍA RODRÍGUEZ DE LA VEGA 1 , MATÍAS IGLESIAS 2
22 • PARAGUAY 2019
Economy
Paraguay has a small, moderately diversifi ed and
open economy, which since the beginning of 2000
stands out for its stability, with an average growth
of around 4.5 percent per year, higher than most of
its regional peers (Broncano, Mendoza and Vega,
2019). ECLAC (2018) points out that the expansion
of GDP was based on agriculture, with the growth
of 4.0 percent year-on-year, in the manufacturing
industry (8.4%) and trade (12%). On the expenditure
side, growth continues to be explained by private
consumption and investment.
Among the main Paraguayan products are soy
(which with its derivatives represents about 40
percent of total exports), rice, beans and tobacco. The
livestock sector, which now represents around 2.2
percent of the national product, experienced moderate
growth and forestry exploitation grew by 9.8 percent.
In the secondary sector, the manufacturing industry
grew by 8.4 percent driven by the production of
paper, the production of oils, milling and baking,
chemicals, beverages and tobacco, machinery and
equipment. Construction, which was the engine of
growth in 2016, slowed down (-1.5%). There was also
growth in the services sector, mainly in commerce