Paraguay: South America's Economic Bright Spot

Nov 3, 2015 | 09:00 GMT

Paraguayan President Horacio Cartes in Madrid on June 8.


The downturn in global commodity prices has hit Latin America hard. Although Brazil and Venezuela are the most notable cases, several countries in the region are experiencing major economic slowdowns or even contractions. Paraguay, however, has managed to buck this trend and become a hotspot for economic growth. The country's small but robust low-end manufacturing sector lies at the heart of this growth, buoyed by business-friendly tax incentives and low wages. Meanwhile, the Paraguayan economy is becoming increasingly diverse. Though Paraguay will find it challenging to sustain growth in the coming years, it will continue to outpace its larger neighbors and to boost the momentum it has already built up in its manufacturing center....