The main objective of this study is to collect basic business information on Paraguay, including its political situation, economic development, business expenses, and investment regulations, etc., and to encourage investors from Taiwan to invest in Paraguay.
Located in the interior of South America, Paraguay covers an area of 406,752 square kilometers and has a population of about 6 million. Paraguay is rich in resources and has depended on exports of agricultural products to support its economic growth. It mostly imports capital goods, such as oil and machinery. Since the 1990s, due to political unrest and the outbreak of financial crises in neighboring nations, Paraguay’s economy has experienced a prolonged recession with minimal or negative growth. However, following the inauguration of a new government in 2003, a series of reforms have contributed to ongoing improvements in the economy, such as tax reforms, the privatization of state-owned businesses, the attraction of foreign investment and concerted efforts to obtain loans from international institutions. In 2006, because of the continued expansion of investment and consumption, the economic growth rate reached 4.0% and per capita income rose to USS1,424, following a booming economy in 2005.
All in all, Paraguay’s economy has maintained a 2~4% growth rate in recent years and the interest rate and exchange rate have also been adequately controlled, so as to create a fine environment for investors. In the future, we expect that Paraguay’s economy will grow continuously as global oil prices become more moderate, as the regional economy improves and the government implements a series of financial reforms. Due to the long distance between Paraguay and Taiwan, there has not been intensive trading intensity between the two. Over the long term, Taiwan’s main exports to Paraguay have included unrecorded media, plastic materials, parts of vehicles and woven fabrics, and Taiwan’s main impo