FDI in Paraguay up by 27% in 2012

By Yolanda Pereira, Berkemeyer Attorneys & Counselors

The UNCTAD FDI Report 2012 shows Paraguay with a return on investment at 17% according to an economic analysis of the newspaper 5 Días. In Latin America only Peru has a higher return. Although total FDI inflow at 272 million dollars is low by South American standards the country’s rate of return is among the highest in the world.

Sectors most favored by investors are real estate and construction – a World Trade Center started construction last year, apartment blocks and hotels are favorites – soybean oil, biofuels, beef and pork industry, manufacturing for the auto industry, and in the extractive industry mining is one of the growth sectors, with a gold mine already in production and several projects for various minerals at the exploration stage. Investment is up in services such as shipping – Imperial Shipping Group announced investment in barge operations – and port facilities, finance and insurance services.

Another growth sector is timber investment following amendments to the regulations for timberland ownership. Similarly, a 14MW hydroelectric project on the Ypané River follows long-awaited regulations for the generation of hydro, solar and renewable energy.