Paraguay

The Republic of Paraguay is a landlocked republic in South America. Lying on both banks of the Paraguay River, it borders Argentina to the south and southwest, Brazil to the northeast and Bolivia to the northwest. The name "Paraguay" is derived from the Guarani words "pará", meaning "ocean", "gua" meaning to or from and "y" meaning "water"; in other words "water that goes to the ocean". The expression in Guarani is thought to refer solely to Asunción, but in Spanish refers to the entire country.

Economy

Main article: Economy of Paraguay

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

Paraguay has a market economy marked by a large informal sector. The informal sector features both re-export of imported consumer goods to neighbouring countries as well as the activities of thousands of microenterprises and urban street vendors. Because of the importance of the informal sector, accurate economic measures are difficult to obtain. A large percentage of the population derive their living from agricultural activity, often on a subsistence basis.

Related Topics:
Market economy - Informal sector - Agricultural

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

Paraguay's economy is very dependent on Brazil, its neighbour in the east. Most of the country's imports come through the Brazilian port of Paranaguá by highway, on trucks. Ciudad del Este is the third largest free-tax commerce zone of the world, only behind Hong Kong and Miami. The country holds the impressive Itaipu dam which used to be the largest concrete structure, the largest dam and the largest power plant of the world. Itaipu's energy supplies about 20% of the current Brazilian needs and is the most important export good of Paraguay. The selling of cheaper goods is another important source of revenue and it is still a common habit in Brazil to go to Paraguay and buy electronics, like TV sets and sound systems there. About 60% of the country's GDP comes from commerce with Brazil. Nearly all the rest comes from commerce with Argentina with which the country shares another major power plant: Yaciretá.

Related Topics:
Brazil - East - Paranaguá - Ciudad del Este - Hong Kong - Miami - Itaipu - GDP - Argentina - Yaciretá

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

The formal economy grew by an average of about 3% annually in 1995-1997, but its GDP declined slightly in 1998, 1999, and 2000. Despite difficulties arising from political instability, corruption, slow structural reforms, high internal and external debts and deficient infrastructure; it is believed that the factor that most contributed to the stagnation of Paraguayan economy was the devaluation of the Brazilian currency, the Real, in 1998; which caused Paraguayan shops to lose their attractiveness (as prices there are mostly dollarised).

Related Topics:
1995 - 1997 - 1998 - 1999 - 2000 - Currency - Real

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

Since 1995 Paraguay has been a member of the free trade bloc MERCOSUR.

~ ~ ~ ~ ~ ~ ~ ~ ~ ~