[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-109300-en":3,"doc-seo-109300-105":31,"detail-sidebar-cat-0-en-105":92},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":21,"is_downloadable":21,"audit_status":21,"page_count":22,"language":23,"language_code":24,"site_id":25,"html_lang":24,"table_of_contents":26,"faqs":27,"seo_title":28,"seo_description":14,"update_tm":29,"read_time":30},109300,3848291630094,"Emma Wilson","https://eur-avatar.wpscdn.com/davatar_085a072bc5b1113ac321206ff7593b45",8,"Research & Report","Paraguay Country Economic Memorandum - Executive Summary","Paraguay has strong economic potential driven by abundant natural resources, a young population, and a stable macroeconomic environment. Over the past two decades, prudent fiscal and macro policies, an open trade and investment regime, and a low tax burden supported export expansion in soy and beef and the growth of services. Realizing higher income status depends on strengthening public institutions, rule of law, efficient use of natural assets, and investment in human capital and infrastructure. Key constraints include slower poverty-reducing growth, vulnerable output to external shocks, and reliance on land-intensive exploitation of natural resources.","Pub lic Disclosure Authorized Pub lic Disclosure Authorized Pub lic Disclosure Authorized Pub lic Disclosure Authorized  \nFROM LANDLOCKED  \nTO LAND OF OPPORTUNITY  \nPARAGUAY COUNTRY ECONOMIC MEMORANDUM  \nEXECUTIVE SUMMARY  \nFrom Landlocked to Land of Opportunity: Paraguay Country Economic Memorandum  \nExecutive Summary  \nParaguay has tremendous economic potential. With abundant natural resources, a young population, and a stable macroeconomic environment, Paraguay appears poised for success. For the past two decades, Paraguay’s growth strategy has consisted of prudent and predictable macroeconomic and fiscal policies, a relatively open trade and investment regime, and a low tax burden on firms and workers. These features, along with the conversion of native forests into crop and pastureland, have propelled Paraguay’s ascent to one of the biggest global exporters of soy and beef. Between 2002 and 2013, a boom in international commodity prices, largely favorable weather patterns, and high global demand supported the growth of these exports. These factors also contributed to the expansion of the services sector in Paraguay, as disposable incomes and demand for non‑tradable goods increased.  \nAchieving Paraguay’s full potential requires a growth strategy supported by strong public institutions that promote the efficient and sustainable use of its natural resources. Endowed with fertile land and two waterways generating more hydropower than it currently consumes, Paraguay aspires to be a “green, profitable, and predictable investment destination”.1 Indeed, if it continues to improve the quality of its public institutions, uphold the rule of law, use its natural assets more efficiently, and invest these resource rents into building human capital and infrastructure, Paraguay could accelerate its transformation to a high income economy. However, the country faces important challenges that need to be addressed in designing the growth strategy to be followed in the coming years. These challenges are:  \ni. Slower growth over the past decade has hindered faster progress in reducing poverty and improving inclusion. The trend of rapid GDP growth that Paraguay experienced during the greater part of the 2000s decelerated in the following decade. After growing at an average annual rate of 4.5 percent between 2002 and 2012, the economy grew at an average annual rate of 3.3 percent between 2013 and 2019, and then 1.1 percent annually on average between 2019 and 2022,2 reflecting the effects of the COVID‑19 pandemic and recurring droughts. While growth has reduced poverty and inequality, the rate of progress has slowed since 2013 along with the deceleration of growth. According to World Bank estimates, the percentage of Paraguayans living beneath the international poverty line of USD 6.85 per day fell 28.4 percentage points between 2002 and 2013, while this reduction was just 3.4 percentage points between 2013 and 2022. This is in part due to a slower rate of formal job creation in the private sector, and a slower rate of formal job creation3 in the public sector as the result of fiscal consolidation efforts. The public sector continues to represent a quarter of formal employment in Paraguay. That is, in the past decade the private sector has not created enough quality employment — i.e., jobs with adequate protection and benefits in the formal sector — to absorb a larger labor force. As a result, almost two‑thirds of Paraguayans work in informal jobs.  \n1 Government of Paraguay presentation, August 2023.  \n2 The figures refer to the compound annual growth rate (CAGR) of GDP per capita in constant values of US dollars in 2015, using World Bank data.  \n3 Includes salaried workers who contribute to the retirement and pension system and independent workers who are registered in the Registro Único de Contribuyentes (RUC), or tax ID register.  \nii. The country’s productive structure is vulnerable to external shocks. Due to Paraguay’s high dependence on","cbCaifyFPgtGdqK4","https://ap.wps.com/l/cbCaifyFPgtGdqK4","pdf",6736156,4,1,10,"English","en",105,"# Overview\n# Growth potential and supporting drivers\n## Institutions and investment priorities\n# Challenges\n## Slower growth and poverty progress\n## Vulnerability to external shocks\n## Natural-resource dependent growth model","[{\"question\":\"What factors have driven Paraguay’s economic ascent in recent decades?\",\"answer\":\"Prudent and predictable macroeconomic and fiscal policies, a relatively open trade and investment regime, low tax burdens, and strong agricultural expansion supported growth in soy and beef exports and the services sector.\"},{\"question\":\"Why has progress in reducing poverty and inclusion slowed?\",\"answer\":\"Growth decelerated after the 2000s, and the pace of formal job creation has been slower in both private and public sectors, limiting quality employment and leaving many workers in informal jobs.\"},{\"question\":\"What main challenges could affect Paraguay’s growth strategy going forward?\",\"answer\":\"Slower growth, vulnerability to external commodity-price and weather shocks, and long-term risks from an exploitation-based model—such as native forest loss, climate change impacts on yields, and competitiveness pressures for sustainable production.\"}]","Paraguay Country Economic Memorandum - 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