Paraguay
GENERAL INFORMATION
GENERAL INFORMATION
Area (km2)
Oficial Languages
Currency
Population
GDP in US Millions
Capital
Other important cities
Employement Force
Population growth
Unemployement
Inflation
406.752
Spanish and Guarani
Guaraní (Gs.)
6.672.631 (2012)
US$ 25,5 mil millions
Asunción
Ciudad del Este,
Encarnación y
Concepción
3.412.443
1,69 %
4,9% of EF
4%
Venezuela
Guayana
Surinam
Guayana Francesa
Colombia
Ecuador
Brasil
Perú
Bolivia
Chile
Uruguay

Paraguay, located in the
heart of South America. Is
the most financially stable
country in the region, with
lower inflation rates and
lower devaluation of its
currency.
International Reserves (JUN 2013)
US$ 5.758 milons
External Public Debt (JUN 2013)
US$ 2.623 milons
Argentina
A great freshwater reservoir
•Average Temperature: 24° C / 75º F
•Annual rain average: 1.200 mm.
Paraguay
river
Paraguay is located in the center of
the 5th. largest freshwater
reservoir: The Guarani Basin.
Pilcomayo
river
Paraná
river
REGIONAL LOGISTICS
WATERWAY
The
Paraguay-Paraná
waterway,
connects five countries with the
Atlantic Ocean, over a distance of
3442 km.
Between 1988 and 2012, the
transportation of goods grew from
700 thousand to over 20 million tons
a year.
Paraguay's main ports are: Asuncion,
Villeta, San Antonio and Encarnación.
From a total of 1752 barges that have
permits to navigate the waterway,
1355 do it so under Paraguayan flag.
This potential led to international
companies
to
invest
in
the
shipbuilding sector in Paraguay. An
example is the TSUNEISHI PARAGUAY
SA, which plans to build the largest
barge shipyard in Latin America.
ENERGY
Hidroelectric Power
Clean and Sustainable
MWh
Production
Surplus
Demand
2000 2005 2010 2015 2020 2025
7410 7410 8410 9002 9152 10592
6290 6056 6578 6621 6054 6563
1120 1354 1832 2381 3098 4029
YACYRETA DAM
NOMINAL INSTALLED CAPACITY:
31000 MW
NUMBER OF TURBINES:
20 (10 PY/10 AR)
INSTALLED CAPACITY:
210.000 GWh/AÑO
ITAIPU DAM
NOMINAL INSTALLED CAPACITY:
140.000 MW
NUMBER OF TURBINES:
20 (10 PY/10 BR)
INSTALLED CAPACITY:
675.000 GWh/YEAR
ACARAY DAM
NOMINAL INSTALLED CAPACITY: 252 MW
GENERATION:
950 GWh/YEAR
COMMERCE
Competitive Advantages to Export
Starting in 2014, Paraguay will be the only country in
MERCOSUR with preferential access to the European Union.
• Tariff liberalization for 9,749 products
• Potential for integration as manufacturer and exporter of Paraguayan goods.
• Direct access to a market of 500 million people.
Some examples
General
tariff
Tariff for
Paraguay
Vinegar Gherkin
17,6%
0%
Manufactured in Paraguay (local or imported inputs)
Crude Soybean Oil
6,4%
0%
Elaborated in Paraguay(soja importada o local)
Canned Palm Hearts
10,0%
0%
Processed in Paraguay (local or imported inputs)
Plywood
7,0%
0%
Manufactured in Paraguay (local or imported
laminated)
Blouses for ladies
12,0%
0%
Confection, with fabrics imported with a value of max.
40 %
Steel Pipes
3,7%
0%
With imported foreign values of max. 35%
Products
Origin requirements
According to official estimates by the International Monetary Fund (IMF), Paraguayan
growth projection for 2013, is of 13%. Unofficial figures suggests that this index could
climb to even 14%.
The IMF estimates that Paraguayan GDP for 2014 will grow of 4.6%
Paraguay is thus located at third place among countries with the largest projected
growth.
Country
Mongolia
Iraq
Paraguay
China
India
Brasil
Mexico
Sudáfrica
Estados Unidos
Canadá
Japón
Alemania
GDP % variation
2012
2013
12,7
10,2
-1,5
7,8
4,5
1,0
3,8
2,3
2,3
2,0
2,0
0,9
15,7
14,7
13
8,2
5,9
3,5
3,5
2,8
2,0
1,8
1,2
0,6
GDP COMPOSITION
Agriculture
22,3 %
Industry
18,1 %
Services
59,6 %
YEAR 2012
Exports
Imports
MERCOSUR
1.223.610.863
4.371.786.825
PACIFIC ALIANCE
EU
535.960.201
1.186.922.481
320.093.231
692.089.833
REST OF THE WORLD
TOTAL
2.025.833.147
4.972.326.692
5.305.627.894
10.689.597.783
YEAR 2013*
MERCOSUR
PACIFIC ALIANCE
EU
REST OF THE WORLD
TOTAL
* Jan-Jun 13
Exports
676.440.477
385.602.918
941.004.557
1.400.310.481
3.403.358.433
Imports
978.709.122
825.916
58.075.130
4.544.468.409
5.582.078.577
BUSSINESS CLIMATE
Economic Freedom
Economic Freedom Index – The Heritage Foundation
COUNTRY
Paraguay
RANKING
77
Brazil
113
Argentina
138
Bolivia
147
Ecuador
158
Venezuela
175
Taxes
Paraguay offers the Most Competitive Tax Structure in the Region
TAX
Corporate Income Tax (*)
Personal Income Tax
Value Added Tax (VAT)
PARAGUAY
ARGENTINA
URUGUAY
BRAZIL
CHILE
≤10%
35%
25%
34%
17%
10%
35%
25%
27,5%
40%
≤10%
21%
23%
25%
19%
*Obs: if incomes are remitted internationally it may be up to 27.5%
Production Incentives
Convention on
the Settlement of
Investment
Disputes
between States
(CIADI)
Rules of Origin - MERCOSUR
Necessary regional content in %(MERCOSUR)
Paraguay enjoys special treatment in terms of rules of origin for
products manufactured until 2022.
It is easier to acquire origin in Paraguay than in Mercosur.
INVESTMENT OPPORTUNITIES
MINING
The potential of the mining and hydrocarbons industry in
Paraguay has recently taken great visibility in the region.
This activity is regulated in the Act: 3.180/2007.
The following areas have been explored:
North (Apa River):
Total area 600,000 hectares (approx.)
Geochemical studies detected the presence of the following
minerals: copper, lead, zinc, gold, silver, cobalt, nickel,
chromium, iron, among others.
South (Tebicuary River):
Total area 300,000 hectares (approx.)
Geochemical studies detected the presence of the following
minerals: lead, zinc, gold, cobalt, nickel, chromium, iron,
uranium, among others.
INFRASTRUCTURE
Road Infrastructure
Total road infrastructure of Paraguay:
32.234 km
Total paved roads:
8,924 km (27.7% approx.)
Main Projects:
•
Improvement of National Roads 1,2,6 and 7
•
Second bridge between Paraguay and Brazil over the Parana River
•
•
Improvement of the Bioceanic Corridor - Capricorn Hub
Revitalization of railways Asuncion-Encarnacion
POTENCIAL SECTORS

Meat and Leather

Energy

Tourism

Call Center

Biofuels

Metallurgic

Forest Products

Fruits and Vegetables

Cotton, Textile & Apparel

Stevia

Information Technology

Oils
SOME ADDITIONAL FACTS
1st. exporter of Electricity in the world.
1st. exporter of Organic Sugar in the world.
2nd. largest producer and exporter of Stevia in the world.
2nd. largest producer of Tung in the world.
4th. largest exporter of Soybean in the world.
4th. largest exporter of vegetal charcoal.
4th. largest exporter of starch of yuca.
4th. largest exporter of Soybean Oil in the world.
6th. largest producer of Soybean in the world.
8th. largest exporter of meat in the world.*
* Foreign Agricultural Service/USDA – Office of Global Analysis
Why invest (& live) in Paraguay?
1. Plenty of natural resources
2. Abundant electrical energy, environmentally
clean and renewable.
3. Mainly young population.
4. Stable macroeconomy. Fiscal policy with the
lowest tax burden in the region.
5. Benefits for foreign and domestic investment.
6. Quick return on investment.
7. It is among the world's top exporters of soybeans
and beef, with high productivity and expansion capacity.
8. Good levels of quality of life and safety.
¨A World Class food producer, open and connected
to the world, with high rates of development, rule
of law and public safety, environmentally
sustainable, with women inclusion and young
entrepreneurship, and a Government that promotes
equity, solidarity, transparency and zero tolerance
to corruption¨
THANK YOU