Paraguay reports favorable health and economic outlook

RIO DE JANEIRO, BRAZIL – Minister Carmen Marín stated that the South American country is positively addressing the economic, employment and poverty crisis resulting from the pandemic.

“Paraguay is striving to improve the business environment, which is key to attracting investment. There is an agenda to promote business through digital platforms, the simplified companies law, with advantages for investors,” she added.

The member of the cabinet headed by president Mario Abdo Benítez added that trade is showing a relevant dynamism.

The country developed an action plan focused on the economy, but also with a social component aimed at educational transformation and strengthening the formalization of the labor market. Paraguay has a simple tax system with low rates and tax exemption mechanisms, she added.

With respect to the outlook for Latin America, Marín said that the balance is positive. “We are doing well, with significant recovery. Economic activity in the region is rebounding,” she said.

However, Marín stressed that the epidemiological situation must be taken into account. “We are at a turning point, the vaccination process is advancing. The region is recovering from a very complex context, Latin America is one of the most affected regions by the pandemic, it is something we cannot ignore,” she stated.

According to Johns Hopkins University’s count, through yesterday Paraguay totaled 459,948 Covid-19 cases and 16,195 deaths. In addition, 26.4% of the population is fully vaccinated. “We look at the numbers and we see an important recovery process,” Marín added.

Last July, the Central Bank of Paraguay raised the Gross Domestic Product growth estimate from 3.5% to 4.5% for 2021.

“We must look at the data on a permanent basis, we are nearing pre-pandemic levels. The socioeconomic impact on all countries was considerable, poverty, unemployment. Paraguay is no stranger to this. But looking at the data, the labor market is recovering and some sectors still need support,” Marin stressed.