The economic activity is mainly based on agriculture, livestock and trade. Industrial development is minimal and related to the production of meat, beverages, tobacco, machinery, equipment and agricultural products. 50% of its exports represent soy related products.
Paraguay - a sound and fast-growing market
Paraguay is an economically solid country due to high price stability of its export mix in comparison to the exporting products of its neighbors such as petroleum products. Furthermore, the country is politically speaking very stable with the same party governing in the last 70 years with only one exception. These peculiarities are reflected in the free-floating currency exchange rate of the Guaraní to USD, which did not depreciate over the last 18 years.
Opportunities for Swiss companies
The South American country is especially interesting for banking. First, there is a huge demand for credit and the private and public sector is not highly indebted. Second, the corporate tax rate is only 10% and no capital restrictions apply, which means possible earnings are taxed lightly.
Paraguay is member of the Mercosur trading block, which includes Brazil, Argentina, Chile and Paraguay. Currently, EFTA and Mercosur concluded negotiations for a free trade agreement, and it will probably come into force in 2021.
Download the report, provided by the Swiss-Paraguayan chamber of commerce, and learn about the financial sector, regulations and opportunities for Swiss companies in Paraguay.
