Is SA a developing country

Information about Paraguay

Good location for investments

That speaks for Paraguay

Paraguay is a good location for investment: the country is politically stable, the legal provisions are business-friendly. The climate is subtropical to tropical. The conditions are ideal for agricultural use, the soils naturally fertile and rich in minerals. Therefore the land prices show high increases in value. The country has seen a very positive development in recent years with an annually increasing GDP and a falling inflation rate.

Agriculture and cattle ranching

Paraguay consists largely of agricultural land. There is cattle breeding, arable farming, pasture, dairy and forestry. Cattle breeding is one of the main branches of agriculture, especially due to the high demand for South American beef that has persisted for years. Corn, soybeans, wheat, peanuts, cotton and other crops are grown. Favored by the enormous size of the land in relation to the population density and relatively low land prices, the farms (estancias) often extend over several hundred or even thousands of hectares.

Mercosur Free Trade Area

The establishment of Mercosur on January 1st, 1995 brought Brazil, Argentina, Uruguay and Paraguay closer together economically and politically. Mercosur's aim is to create a common market. Venezuela has also been a member of Mercosur since 2012/2013. The accession of Bolivia has yet to be ratified by the parliaments of the member states. Chile and Peru are associated with Mercosur. Since 2004, the capital Asunción has been the seat of the permanent arbitration tribunal of Mercosur. A free trade agreement with the EU is also being sought. Since 2012 there has been a growing interest in the Pacific Alliance (Chile, Peru, Colombia, Mexico). Paraguay has obtained observer status.

International Relations

Japan provides a lot of technical and financial assistance and is an important partner, as is Taiwan. China is now Paraguay's largest supplier. Russia and Brazil are important customers. Spain and Germany are important partners within the European Union. Paraguay's relations with the European Union have strengthened in recent years. In 1992 a framework cooperation agreement was concluded. In 1995 a framework agreement on cooperation between the European Union and Mercosur followed. The European Union is one of Paraguay's most important donors and has made the import of Paraguayan goods much easier since December 2008.

Nature and culture

The South American landlocked state Paraguay has a lot to offer in terms of landscape and culture: the tropical savannah and dry forest region of Gran Chaco in the northwest, rainforests, swamp and mountain landscapes in the southeast. Along with numerous other regions in the northern half of South America, large parts of Paraguay belonged to the indigenous Guaraní people in pre-Columbian times. The interplay of cultures is still alive today. In addition to Spanish influences on the social structure, elements of African, German, English and Portuguese culture can be found in Paraguay, which over time have almost completely merged with the Guaranian-Spanish tradition. With the exception of a few farmers, almost 97 percent of the population live in the fertile eastern region of the country, where agricultural products and their export make up the majority of agriculture.