1. NS4540 Winter Term 2019 Paraguay Indices
Europa brazil economy

2. Paraguay Macroeconomic Trends

3. Paraguay Strengths/Weaknesses

4. Paraguay Small Economic Size

5. Paraguay Population

6. Paraguay Demographic Profile

8. Paraguay: Volatile Growth

9. Paraguay: Poverty

10. Paraguay Income Distribution

11. Paraguay: HDI

12. Paraguay: GDP Structure

13. Paraguay: Trade Partners

14. Paraguay: Governance

15. Paraguay: Economic Freedom

16. Paraguay: Doing Business

17. Paraguay Competitiveness I

18. Paraguay Competitiveness II

19. Paraguay Minimum Wage

20. Paraguay: FDI

21. Paraguay: Projected Growth

24. Politics
The president, Mario Abdo of the right-wing Partido Colorado (PC), succeeded Horacio Cartes as president in August 2018 following a close election.
The PC retains control of the Senate (without a majority); fragmentation in Congress will stall legislation.
Likely Mr Abdo to slow the market-oriented reform agenda of Mr Cartes.
However, he will retain a broadly orthodox economic policy stance during his five-year term.

25. Assessment I
Growth will remain resilient in 2019, driven by strong domestic demand.
Maquilas (factories built for foreign companies under the free zone regime) will continue to grow rapidly owing to sharply rising private investment.
These are mainly in the
assembly of automotive parts (50% of maquila exports) and
textiles (32% of the total including shoes).
Vibrant performances by the maquilas, do to an attractive tax policy for foreign investors.
The maquilas should support
job creation and ultimately
household purchasing power.

26. Assessment II
Private consumption will be driven by the 3.5% increase in the minimum wage that came into effect in July 2018.
The banking system remains fragile, as it is
highly dollarized (47% of loans and 45% of deposits in August 2018) and
reliant on the agricultural sector, which accounts for a large proportion of the loans granted.
Exports will benefit from the relatively improved economic situation in Brazil and Argentina
The agro-food sector, which is export-oriented, should continue to expand vigorously.