Paraguay is among the best countries to do business in 2019 in the region?
According to Forbes, since 2014, Paraguay’s economy grew at an average rate of 4%, due to strong production and high global prices, while other countries in the region have contracted
Chile and Uruguay are still the best countries in South America to do business in 2019, according to a ranking published by the US magazine Forbes.
While Paraguay is ranked 5 among the best, according to the table. Thus, over a total of 161 countries analyzed by Forbes on the business possibilities in 2019, Uruguay ranks second in South America, behind Chile, and ahead of Brazil, Argentina and Paraguay, which are in third place four and fifth, respectively.
This specialized magazine in finance and business founded in 1917 also determined that in Latin America as a whole the preferable destinations to do business in the new year are Chile, Costa Rica, Mexico, Uruguay, Peru, Colombia, Brazil, Argentina, Dominican Republic, Guatemala , Ecuador and Paraguay, in this order.
In the group of 161 countries evaluated by Forbes, Chile ranks 33, Costa Rica 48, Mexico 54, Uruguay 58, Peru 64, Colombia 67, Brazil 73, Argentina 76, Dominican Republic 91 , Guatemala on 97, Ecuador on 99 and Paraguay on 114, Honduras on 120, Bolivia on 128 and Nicaragua on 135.
According to Forbes, Paraguay is distinguished by a large informal sector, which includes the re-export of imported consumer goods to neighboring countries, as well as the activities of thousands of micro-enterprises and urban street vendors.
A large percentage of the population, especially in rural areas, subsists on agricultural activity. Due to the importance of the informal sector, precise economic measures are difficult to obtain. In per capita terms, real income has grown steadily in the last 5 years, as the strong global demand for basic products, combined with high prices and favorable climate, supported the expansion of Paraguay’s exports based on basic products. . Paraguay is the 5th world producer of soybeans.
He adds that since 2014, Paraguay’s economy grew at an average annual rate of 4%, due to strong production and high global prices, at a time when other countries in the region have contracted.
The Paraguayan Government recognizes the need to diversify its economy and in recent years has taken steps to do so. In addition to seeking new commodity markets in the Middle East and Europe, Paraguayan officials promoted the country’s low labor costs, cheap energy from its massive Itaipu hydroelectric dam and the single-digit tax rate for foreign companies. As a result, the number of factories operating in the country, mostly transplants from Brazil, has tripled since 2014.
Corruption, limited progress in structural reform and poor infrastructure are the main obstacles to long-term growth. Judicial corruption is endemic and is considered the biggest barrier to attracting more foreign investment. Paraguay has been adverse to public debt throughout its history, but recently sought to finance infrastructure improvements to attract foreign investment, says Forbes magazine.
Chile is the best performer in the Region
Forbes points out that Chile is a country characterized by a high level of foreign trade and a reputation of solid financial institutions, as well as a consistent policy that has given it the strongest sovereign bond rating in South America. Exports of goods and services from Chile represent about one third of its Gross Domestic Product (GDP) and basic products 60% of total exports, according to Forbes.
Copper is Chile’s main export and provides 20% of the Government’s income. Its main macroeconomic data is a GDP of 277 billion dollars as of December 2018, with a growth of 1.5%; a GDP per capita of $ 15,300; a ratio between the trade balance and negative GDP, of -1.5%; a population of 17.9 million, a ratio between public debt and GDP of 24%, unemployment of 6.7% and inflation of 2.2%.
Source: La Nacion PY