The Diplomat
Paraguay’s Minister of Industry and Trade, Luis Alberto Castiglioni, yesterday highlighted his country’s stability and predictability as the main incentives for attracting foreign investment.
During an event at CEOE, organised by the employers’ association, together with ICEX and the Spanish Chamber of Commerce, Castiglioni insisted that the economic model in place in Paraguay and the “roadmap” undertaken 18 years ago, with State policies and structural reforms, are the keys to the South American country being at the top of the economic climate ranking in Latin America, ahead of countries such as Colombia, Chile and Peru.
The minister pointed out that while other countries in the region fell during the pandemic with figures close to 7, 12 or 14 percent, Paraguay fell by only 0.6 percent and expects to end this year with a GDP growth of 8.5 percent.
He pointed out that this strong growth is encouraged by low taxation, very competitive labour costs and investment laws that do not establish limitations on the entry of foreign capital, which, he said, has favoured the landing of Spanish companies in the country.
Castiglione insisted that the Paraguayan government “is an ally of the private sector” and invited Spanish businessmen to continue investing, especially now that they are going to implement the National Logistics Plan.
In a panel moderated by the general director of CEOE International, Narciso Casado, representatives of two Spanish companies: the general secretary of Prosegur, Antonio Rubio, and the general director of ILAI (Inversiones Líneas Aéreas Internacionales), shareholder companies of Paranair, David Navarrete, who corroborated that political stability, economic maturity, a favourable tax system, an average sustained growth of 5% for more than ten years and the facilities of access to public bodies facilitate the development of business in Paraguay.
The event was opened by the president of CEOE, Antonio Garamendi, who highlighted the increase in Spanish-Paraguayan trade and that, according to the Central Bank of Paraguay, Spain was the leading investor in the country in 2020.
For her part, the CEO of ICEX Spain Export and Investment, María Peña, stressed that Spanish companies are present in many of the projects driving growth and development in Paraguay with a “long-term” commitment.
Inmaculada Riera, Director General of the Spanish Chamber of Commerce, pointed out that Spanish investors contribute to growth and employment in Paraguay with projects in priority sectors ranging from infrastructure, energy and services to agrotechnology, finance and publishing.
During the event, Paraguay’s REDIEX Director General, Ambassador Estefanía Laterza, highlighted a number of reasons why people should invest in her country, noting that over-dependence on Asia is leading to a reconfiguration of trade flows. She indicated that Paraguay is an excellent gateway to all of Latin America and added that the regional and sub-regional environment, marked by political changes, makes her country stand out for its stability.
