paraguay
P
araguay, offi cially the Republic of Paraguay, is a country positioned in central South America. It is
a constitutional republic established in 1811 as a result of independence from Spain, and the elected
President is both the head of state and head of government. Paraguay spans 406,752 square kilometers,
bordering Argentina, Bolivia, and Brazil.
A large percentage of the population, especially in rural areas, derives its living from agricultural activity,
often on a subsistence basis. However, in recent years, construction, industry, tertiary services, and maquila
services have shown an increase in the GDP. Paraguay stands out as the leading exporter of energy in South
America and is among the largest n et exporters of clean energy worldwide.
The Government of Paraguay recognises the need to diversify its economy and has taken steps in recent
years to do so. The country has achieved impressive economic growth and shared prosperity over the last
15 years.
Paraguay has achieved impressive economic growth and shared prosperity over the last 15 years. The
economy grew at 4.2 percent per year on average (2004-2017), faster than most of its regional comparators.
Paraguay’s Central Bank estimates a consolidation of economic expansion, raising the GDP growth projection
for this year to 3.8 percent. To this eff ect, Paraguay has undertaken a reform agenda to improve living
conditions and boost potential growth, increasing investment and productivity.
The solvency of macroeconomic performance, added to comparative, competitive and complementary
advantages in terms of production factors, is motivating in an unprecedented way the interest of foreign
capital in productive investments of Paraguay.
Paraguay is a member of MERCOSUR, UNASUR, the Community of Latin American and Caribbean
States (CELAC) and the Organization of American States (OAS), which seek to advance a variety of regional
political and economic interests.
4 • PARAGUAY 2019