Paraguay Paraguay-India - Page 23

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