Reasons for Paraguay´s Economic Success in 2010

In the first place, global demand for primary products –food for the world- benefits most Latin American countries, and our country has been blessed with excellent climate conditions. The world market has also offered favourable prices for our products, and as other economies in the region, we have been touched by the dynamism of the Brazilian economy.

Secondly, if we analyze the economy of Latin America and the Caribbean in 2010, we find that it grew 6% in GDP after a 1.9% drop experienced in 2009, although its expansion will moderate to 4.2% in 2011, according to a recent report released by ECLAC in Chile. At country level, Paraguay had the highest expansion at 9.7%, according to official data. Additionally, a publication by the World Bank locates Paraguay in a better situation in terms of investing than its neighbors Argentina, Brazil and Bolivia. Of 183 countries, the study found Paraguay in the 106th position, Argentina at 115, Brazil at 127 and Bolivia 149.

Third, we must point out that the growth of the Paraguayan economy in 2010 was based on the rebound effect the agricultural production had after the 2009 decrease. Indicators revealed that this year production was of 13 million tons of grain, compared to 6.5 million tones produced last year.

Fourth, and last main reason, is the concession programs promoted by the government which allowed Paraguay to develop its infrastructure while creating jobs to boost the economy in 2010. Important international companies have also stated their interest in making significant investments in our country, using Paraguay’s abundant energy, produced by the giant hydroelectric dams Itaipu and Yacyreta as their main input. With the installation of these huge electro-intensive investments we will be getting closer to accomplishing our dream of developing our country based on our abundant energy. On the other hand, the industrial sector promises investments in order to add value to primary goods.
11/04/2011