Paraguay’s rising status as a top destination for foreign investments in Latin America has been spotlighted by One World Media. The outlet highlighted the South American nation’s macroeconomic and political stability, natural resources, strategic location, and progressive gender equality regulations as key factors in attracting global investors.
Paraguay’s impressive 4.7% GDP growth in 2023 stands in stark contrast to South America’s average of 2.2%. This economic surge is largely attributed to robust exports of agriculture, livestock, and electricity, the latter fueled by the country’s substantial hydroelectric resources. The strategic placement of Paraguay along the bioceanic corridor and its access to the Paraguay-Paraná waterway further enhance its appeal. These factors, combined with favorable tax legislation for production and export activities, have been crucial in drawing foreign investments.
President Santiago Peña, who assumed office in August of the previous year, has consistently emphasized the significance of public policies that blend sustainable development with an openness to international markets through a competitive tax system. His administration has prioritized strengthening regional and global bilateral relationships, exemplified by the recent agreement with Brazil on the Itaipu hydroelectric plant tariffs.
Paraguay’s re-entry into the US beef market after a 25-year hiatus marks a significant milestone. Additionally, the Canadian Food Inspection Agency (CFIA) has approved Paraguayan meat for the Canadian market, with negotiations for exports to Mexico progressing well.
Under Peña’s leadership of Mercosur, negotiations for a Free Trade Agreement with Japan have commenced, focusing on sectors such as food, renewable energy, and technology. A similar agreement with Singapore has already been finalized, and new trade deals are being negotiated with the United Arab Emirates, China, and the United States.
Paraguay also distinguishes itself with a remarkably low greenhouse gas emission rate of 0.1%, one of the lowest globally. The country’s commitment to renewable energy is set to strengthen with the upcoming Omega Green biorefinery. Additionally, the country is seeing significant developments such as its first industrial pulp mill, a collaboration between Paraguayan, Swedish, and Austrian entities, involving a US$4 billion investment and nearly 200,000 hectares already under cultivation. In a historic move to protect its waterways, Paraguay has enacted a decree banning the establishment of new petrol stations in urban areas.
These achievements underscore Paraguay’s growing appeal as a hub for foreign investment, driven by a stable and forward-looking economic and political environment.
