MercoPress. South Atlantic News Agency

Paraguay attracted a billion dollars in private investment in three years

The assembling of motor bikes is clear evidence of the expansion of manufacturing

Over a billion dollars have poured to the Paraguayan private sector, mostly under the ‘maquila’ system in the last three years according to a report from the Ministry of Industry and Commerce.

Between 2008 and 2011, under bill 60/90, Paraguay awarded fiscal incentives to 314 private investment projects which add up to over a billion dollars and were concentrated mostly in small and medium sized companies.

Priority has been given to “investment policies that help create jobs through manufacturing, maquila, export support, opening of new companies and strengthening of micro, small and medium enterprises already established” said the official release from the Ministry.

The implementation of these investments in the micro and small undertakings has ensured the “creation of over 7.600 jobs”, adds the release which also coincides with the third anniversary of the current administration of President Fernando Lugo.

Maquiladoras apparently are the most active, “having experienced an exponential growth” in the three year period, which in numbers “represent 299.7 million dollars in exports”.

In the auto sector the assembling of motorcycles “in three years has attracted investments of 132.5 million dollars with the creation of 9.366 jobs”.

Landlocked Paraguay and junior member of Mercosur has a population of 6.5 million and a GDP of 33 billion dollars. The economy expanded a whooping 15% in 2010.

The backbone of the country’s economy is farming: it is among the main global exporters of soybeans and beef, and is also one of the few in the world with surplus energy from two major hydroelectric complexes it shares with Mercosur senior members, Brazil and Argentina.

The break up of the economy shows 21.8% agriculture, 18.2% manufacturing and 60% services.

Fernando Lugo took office in August 2008, which also helps to explain the release on investment and job-creation.