Which are Paraguay’s attributes for the increase of foreign investment?

By BKM | Berkemeyer

Llorente & Cuenca, a communication and public affairs management consultancy for Spain, Portugal and Latin America, highlighted Paraguay’s economic stability as a major reason for the growing foreign investments in the country. “Currently, Paraguay is living a moment that reflects its evolution of the last 30 years: a politically and economically stable country that, despite some turbulence, has managed to conduct itself democratically. Attributes that have directly contributed to the increase of foreign investment”, states a January 2019 report titled “Paraguay: on the way to the investment grade”.

“The macroeconomic stability that Paraguay has maintained for years has led to the three most important credit rating agencies in New York (Moody's, Fitch, Standard & Poor's) to position the country as privileged destiny because of such stable conditions”, saids the Llorente & Cuenca report.

Since the beginning of 2000, Paraguay has had a growth average of around 4.5% per year, a result of factors like abundant energy and a considerably good tax regime. “Paraguay's growth has not stopped even in the face of the stagnation of its two main trading partners: Brazil and Argentina. Thus, its immediate challenges are to continue reducing poverty, improving the provision of public services (education and health) and improving infrastructure quality”, ends the report.