In its latest release of Paraguay Update, the Paraguayan-American Chamber of Commerce relates a somewhat sullen political panorama, with the discovery of several domestic and international scandals, yet a more positive scenario is exposed in other sectors, such as investments for example.
In this sense, two cases of corruption were revealed, one within the National Police Department, where illegal sales of petroleum among the ranks of the national police was discovered, another in the Controller’s Office, where the payment of very high salaries to secretaries was taking place. To this, the FIFA Scandal should be added, as it included one Paraguayan representative.
Another important topic this month was the attempt of modification of the Public Sector / Private Sector Alliance legislation by some Congress Senators, which introduces the requirement for congressional approval for projects that fall within the scope of the law. This is yet to be decided by the Chamber of Deputies.
With respect to economy, the Central Bank reiterated that the gross domestic product would increase 4% this year and that deficit would be no greater than 1,5%. The US dollar exchange rate with respect to the Guarani continues to rise and the Consumer Price Index reached -0.1% at the end of the month of April, below its 4% target for the year.
In terms of investment, the international corporation HYUNDAI MOTORS revealed that the low cost of workers, abundant energy, large nearby markets and fiscal incentives were the key decisive factors for it to invest in Paraguay.
Export of Paraguayan cattle and meat continue to be on the rise, with Ecuador recently having acquired Paraguayan genetically improved bulls and the European market re-opened for Paraguayan meat.
To read the report, please click here.