Global financial markets are in turmoil and there is no sign of reprieve as persistent inflation will most likely cause the world’s central banks to keep raising interest rates. This also has investors looking for places to put their capital to work as cash, while safe, is declining in value. As the USD strength accelerates, this increases buying power abroad. Of course, more risk. But below, I outline the case of why investing in Paraguay is a lower risk than others and can yield strong ROI. And see our full investment deck here

Economic Growth

Paraguay has been experiencing several years of economic growth with an average GDP growth rate of about 3.25% per quarter pre-pandemic. And the country recovered quickly turning positive again in Q4 2020 and surging to 14.1% in Q2 2021. The country’s growth has since suffered due to a massive drought which took its toll on a country that generates a large amount of its revenues coming from agribusiness. With those effects wearing off, it is safe to assume that Paraguay will be back to a strong trajectory once again

Low Tax Rate

Paraguay’s low 10% personal and corporate tax rate is very attractive to investors and is more than 50% below the next lowest in the region

Low Electricity Cost

Paraguay is home to the world’s 2nd largest dam (shared with Brazil) which provides the cleanest and one of the lowest electricity rates available. Furthermore, when the current agreement with Brazil ends and Paraguay is allowed to sell excess supply at market rates, the country should see a strong economic boost

Currency Stability

The local currency, Guarani, has been very stable for some time, especially as compared to its South American neighbors

Foreign Investment Friendly

The Paraguayan government is seeking higher participation in the global marketplace and receiving Foreign Direct Investment. In addition to joining MERCOSUR and creating alliances with the EU for increased trade, the government also passed Law 60/90, which provides exemptions on duties for the importation of capital goods, raw materials, and inputs allotted to the domestic industry

Labor Market

Paraguay’s population that is workforce age (15-64) is the highest it has ever been at 65%. And they are eager to participate in newer and modern industries. They are leading the transition from purely a farming country to a country that has a greater diversity of industries