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Paraguay, land of opportunities

Paraguay has a small but growing open economy, which for the past decade averaged 4 percent Gross Domestic Product (GDP) growth per year, and has the potential for continued growth over the next decade. Major drivers of economic growth in Paraguay are the agriculture, retail, and construction sectors. The Paraguayan government encourages private foreign investment. Paraguayan law grants investors tax breaks, permits full repatriation of capital and profits, supports maquila operations (special benefits for…

Containing Coronavirus – Paraguay’s Surprise Success

For a country with a young population and bright future, it’s striking how fixated Paraguay is with the past. The War of the Triple Alliance, an uneven battle that pitted Paraguay against Brazil, Argentina and Uruguay from 1864 to 1970, still shapes political discussions today. The war was notable for its incredible ferocity – judged by deaths per Paraguay’s population it was the most brutal in world history – and the courageous yet doomed defiance of the Paraguayans. But more importantly for investors,…

NEW LEGAL ENTITY IN PARAGUAY: SIMPLIFIED SHARES COMPANY (EAS)

Find out about the new legal entity in Paraguay – the EAS, or Simplified Shares Company – and what this entity can offer business owners entering the market. Paraguay is one of the most underrated jurisdictions in Latin America for doing business. The country has demonstrated astonishing annual rates of economic growth, averaging around 4% between 2015-2017 and increasingly diversifying market opportunities, including blossoming agricultural, service and mining sectors. Although it is enticing, it can be…

Paraguay’s Finance Minister Explains How His Country Can Cope with Covid-19

How will your tax reform improve the system? Benigno López: I believe it was Churchill that said when you think about future generations you are doing the right thing. Well the benefits of this reform will be felt by my successor and the next government of Paraguay because it will take up to five years for it to achieve its full effect. Don’t get me wrong, the state’s tax take will increase next year, but there are many different mechanisms that this law improves and it will be between three to five…

Interview with Liz Cramer, Paraguay’s Minister of Industry and Commerce

What’s behind Paraguay’s recent progress with trade agreements? Minister Cramer: We are fully aware that we need to diversify the Paraguayan economy and strengthen exports – either through access to new markets or diversification of our exports. So, while 2019 was a tough year for the Paraguayan economy it was very productive in terms of international agreements. The main one was clearly the provision free trade agreement with the EU. It’s important to note that we don’t need to wait for other…

Paraguay South America’s Growth Champion Is Set to Rebound After Recession

Paraguay is set to retake its position among the fastest-growing South American economies in 2020, as central bank Chairman Jose Cantero estimates monetary stimulus and public investment will allow it to expand the most in three years. The country will expand 4.1% as a broad recovery spanning agriculture to industry takes hold after the benchmark rate was cut to a nine-year low, Cantero said in a phone interview from Asuncion. A slew of road and highway projects have been started as part of a $6.8 billion building…

Tax Reasons to invest in Paraguay Agriculture

In Paraguay, the return on investment is 22%, according to the report of the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) in 2014, the second-highest in Latin America. In the first place, Peru has 25%, which in that period had registered high returns in An entrepreneur who invests his capital in Paraguay can achieve greater profitability compared to Argentina with a return of 10%, Uruguay with 8% and Brazil with 6%. Paraguay offers capital financiers the lowest taxes in the…

Why and How to Start a Business in Paraguay?

The landlocked country of Paraguay may not be the first place you consider when expanding your business internationally. However, this South American powerhouse is becoming a popular choice for savvy entrepreneurs looking to increase their brand presence in LATAM markets. Below, we take a closer look at just some of the reasons why you should consider making an investment in the territory. We also offer guidance on how to start a business and maximize returns on investment to become a key player in Paraguay.…

The Republic Of Paraguay And Efforts To Shape Future Of Global Trade (2015-2019) – Analysis

In 1991 the Governments of Argentina, Brazil, Paraguay, and Uruguay established MERCOSUR with the signing of the Treaty of Asuncion, making it South America’s largest multilateral agreement assigned to tackle the commercial, economic and political matters in the continent.  With the Treaty of Asuncion, the four nations agreed to ensure a “free movement of goods, services, and factors of production between countries.”  According to a recent publication of the Council on Foreign Relations…

Why are Brazilian Businesses and Investors Flocking to Paraguay?

Paraguay is now competing with regional powers for an increasing cut of the region’s foreign direct investment. Thanks to prudent fiscal policymaking, landlocked Paraguay pulled through troubled times when its major trade partners, Brazil and Argentina, were hit by the 2008 global financial crisis. The country has experienced positive economic growth since the arrival of now ex-President Horacio Cartes in office. Though still operating in the shadows of bigger players in the region, such as Brazil, Mexico,…

South America’s New Panama Canal to Pass-Through ‘Green Hell’

Paraguay plans to turn its remote, sparsely populated northwest into an international transport hub and a key link between ports on the Atlantic and Pacific coasts of South America, in a proposal its government likens to a latter-day Panama Canal. Investment of over $2 billion in basic infrastructure such as roads and bridges aims to transform the Chaco region and boost trade, according to Public Works Minister Arnoldo Wiens. The Corredor Bioceanico will connect ports in Brazil and Chile, while a revitalized…

SOUTH AMERICA’S UNLIKELY NEW ECONOMIC HOPE: PARAGUAY

Paraguay is emerging as a little-recognized beacon of economic success in South America.  It would have been all too easy for foreigners visiting Paraguay at the turn of the 21st century to dismiss the landlocked country as little more than a languid backwater — scarred by a history of war, dictatorship and corruption, and with dim prospects. If they were to return now, they would hardly recognize the place. Gleaming skyscrapers have sprouted up across the capital, Asunción, over the past decade, a testament…

Paraguay: A Friendly Investment Environment

Paraguay’s small land mass borders Argentina, Bolivia, and Brazil. It covers 406,752 square kilometers and houses a population of approximately 7 million people. Despite being one of two landlocked Latin American countries (together with Bolivia), it nevertheless powers a significant economic and logistical hub. It’s a great strategic base for foreign businesses expanding into the region. In the last few decades, Paraguay has started to fight against extreme poverty and adopted many business-friendly policies…

Paraguay is a strong stable economy offering excellent opportunities in agriculture and pastoral farming

Paraguay is a fertile land of exuberant natural beauty in the central region of the continent of South America. Almost as big as California, this landlocked country (tells us that supply is limited) is located between Brazil, Argentina and Bolivia. However, it only has about 6 -7 million inhabitants, who are concentrated almost entirely in the three largest cities in the country in the north. Due to its central location, the country has been commonly referred to as the Heart of America. During the last 50 years,…

Paraguay’s Economic, Political Transformation Deserves Recognition

South America is not at the center of global affairs, but few countries in the region may go as unnoticed as Paraguay. At first glance, Paraguay appears an unlikely prospect to stand out as an emerging-market democracy. In the shadow of the large and populous economies of Brazil and Argentina, the small landlocked country was long one of the poorest and most undemocratic. Yet, gradually but surely, Paraguay has accomplished notable political and economic reforms, a transformation that is earning a second…
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