SPECIAL REPORT
(12%), hotels and restaurants (10.6%) and services to
households (8%).
Another important sector for the economy of the country
is the production of hydroelectric energy, with Paraguay being
the largest producer per capita, and the largest exporter of
clean and renewable electric power in the world.
Regarding mining resources, in 2017, the Mining Director
of the Vice Ministry of Mines and Energy, under the Ministry
of Public Works and Communications (MOPC), pointed out
that the mining industry in the country began to grow in 2003
and that currently, the country modifi es some regulations to
facilitate the arrival of foreign mining investments. For the
rest, reserves of uranium, titanium, gold, nickel, cobalt and
chromium have been discovered.
The Paraguayan economic growth was accompanied by
a reduction in total poverty, which from 2016 to 2017 was
reduced from 28.86 percent to 26.40 percent, while extreme
poverty was reduced from 5.73 percent to 4.41 percent for
being placed at its historical minimum. The World Bank
highlights a rapid increase in the income of the poorest 40
percent of the population and the fact that the middle class
almost doubled in size since 2003, reaching 38 percent of the
total population (Llorente & Cuenca, 2019).
The World Bank stresses that during the last few years,
monetary policy remains consistent with infl ation targets, with
a fl exible exchange rate that continues to cushion external
shocks and foreign reserves at prudent levels. The Fiscal
Responsibility Law supports fi scal prudence, establishing a
defi cit limit of 1.5 percent (Llorente & Cuenca, 2019).
Investment opportunities
The stability of the economy, the abundance of energy
and the legal and tax regime make Paraguay a particularly
attractive country for foreign investment in this region of
the world. Also, the government of Paraguay is strongly
committed to the promotion of foreign investment, since
The sectors of greatest interest for
investment in Paraguay are currently:
the agricultural sector, construction, real
estate, infrastructure, telecommunications,
automotive, fi nancial, call-center services,
food, furniture, agro-industry and those
sectors that require signifi cant energy
consumption.
it considers it essential for the development of the country.
The sectors of greatest interest for investment in Paraguay
are currently: the agricultural sector, construction, real estate,
infrastructure, telecommunications, automotive, fi nancial,
call-center services, food, furniture, agro-industry and
those sectors that require signifi cant energy consumption.
In turn, labor-intensive production activities can constitute
Potential sectors of investment and
productive integration
•
•
•
•
•
•
Food industry,
Auto Parts,
Logistics,
Real estate,
Leather and footwear,
Agricultural and
organic production,
• Biofuels,
• Mining and cement
production,
• Mechanical metal
sector,
• Forestry,
• River and land ports,
• Financial sector;
• Call centers, etc.
• Tourism
PARAGUAY 2019 • 23