Paraguay’s Economy

Thanks to its vast and fertile land, Paraguay is characterized by its agricultural production, which along with the cattle raising sector accounts for about 23% of its GDP. Commerce and services account for 42,9% of the GDP, while the industry sector is relatively low with only 10% of participation in the country´s domestic production. The main activities in the agricultural sector are the production of soybean, wheat, maize and cattle-raising. The main activities in the commercial and services area include governmental expenditure, financial intermediation, transport and communication services.

The industrial sector has been growing mainly through the construction sector. With incentives to foreign investment like Law 60/90 and the Maquila Program, Paraguay offers good opportunities for the establishment of new industries that can take advantage of its cheap labor cost, low tax burden and abundant clean energy.

Thanks to the Itaipu and Yacyretã hydroelectrical dams, Paraguay is currently the main net exporter of electrical energy in the world. This represents a great opportunity for electric-intensive investments that require a constant and cheap electricity provision.

In 2013, Paraguay had the biggest economic growth in South America with a 13,6% GDP increase. After a 4,0% growth last year, 2015 is expected to close with a 4,5% GDP growth thanks to an expansion in the livestock sector.

EParaguay’s Economy