ASUNCION – Paraguay is well placed to take advantage of the reconfiguration of global and regional value chains and attract more foreign direct investment, setting the stage for more job creation and sustainable growth.
This was the main takeaway underscored by authorities, private sector leaders and local experts during the inaugural session of the Invest in Paraguay forum, organized by the Ministry of Industry and Commerce of Paraguay, through its Investment and Export Network (REDIEX, according to its Spanish acronym), and the Inter-American Development Bank.
“Paraguay stands out for its economic stability and favorable business environment, including abundant renewable energy, a talented workforce, proximity to the main markets of South America, and attractive investment incentive laws,” said IDB President Mauricio Claver-Carone. “This presents a unique opportunity for Paraguay to take advantage of the reconfiguration of global value chains.”
The President of Paraguay, Mario Abdo Benítez, also took part in the inauguration at the Conmebol Convention Center in Asunción, with more than 700 investors, business leaders and officials in attendance.
Invest in Paraguay is aligned with the IDB’s Vision 2025 strategy, which provides a roadmap for the sustainable economic recovery of Latin America and the Caribbean that strengthens social inclusion, productivity, innovation, climate action and regional integration.
According to IDB studies, Paraguay can take advantage of opportunities that arise as firms seek nearshoring opportunities to shorten and strengthen their supply chains in sectors such as forestry, textiles, food and agriculture, pharmaceuticals, auto parts and knowledge-based digital services.
Paraguay is one of the most open and dynamic economies of Latin America and the Caribbean, with a stable macroeconomic environment and competitive labor costs. In 2021, the Paraguayan economy grew at a 4.2% clip while its exports rose 27% compared with 2020. IDB estimates the country could increase its exports by $250 million per year by taking advantage of the short term nearshoring opportunities.
To make these opportunities a reality, the IDB recommends the country strengthen its international promotion efforts, simplify import and export processes, support small and mid-sized firms in their efforts to expand to international markets, and focus more on helping private sector reach its potential outside of the capital.
Many factors are contributing the reconfiguration of global value chains. Multinational firms are rethinking their supply chains to make them more resistant to geopolitical tensions, natural disasters and sanitary crises, as well as lower their environmental impact.
2022 Paraguay Investment Forum
On the first day panels focused on sector opportunities, including renewable energy, digital transformation, food security and agribusiness, infrastructure and financial markets.
The second day linked investors from 19 countries with local entrepreneurs, business leaders and government officials through a series of private matchmaking sessions.
About the IDB
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social, and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance, and training to public and private sector clients throughout the region.