ASUNCIÓN - Paraguay, often overshadowed by its larger Mercosur counterparts, is emerging as a beacon of economic resilience and growth within the South American trade bloc. In 2021, the landlocked nation recorded a 4.6% GDP growth, far outpacing the regional average and solidifying its position as one of Latin America's fastest-growing economies.
This growth is largely attributed to Paraguay's burgeoning agricultural sector, which has seen substantial gains from increased soybean and beef exports. These commodities, coupled with a growing manufacturing sector and strategic investments in infrastructure, have helped to fuel Paraguay's economic surge.
Paraguay is also benefiting from its membership in Mercosur. As the bloc continues to negotiate trade deals with various countries and regions, Paraguay is poised to enjoy the benefits of increased access to international markets. The recent EU-Mercosur trade agreement, for example, is expected to significantly boost Paraguay's export sector.
While Paraguay's economic outlook remains positive, it is not without challenges. The country continues to grapple with issues of income inequality and corruption, which could potentially deter foreign investment. However, the government's ongoing efforts to address these issues are demonstrating positive results, as evidenced by the country's improved ranking in the Corruption Perceptions Index.
In conclusion, Paraguay's economic prowess within the Mercosur bloc, supported by a favorable trade environment and strategic investments, is putting the country squarely on the radar of international businesses. As Paraguay continues to build on its economic success, the country provides an interesting case study for other emerging markets within the region.