The International Monetary Fund has stood out that the economy of Paraguay has proved to be resilient in front of the recession in Latin America. What have been the country’s strengths?

Historically, Paraguay has been showing macroeconomic stability that has been consolidating in the past years, also thanks to the policy implemented to the current government.. We have an independent central bank aiming at low and stable inflation, which has managed to take the right decisions during tough times. The Central Bank has maintained a stable monetary policy regardless of any political pressure or interest group within the private sector and that resulted in Paraguay having one of the lowest rates of inflation in the region.
2014 and 2015 have been years of change, and this has allowed Paraguay to keep on improving its economy. This was achieved through low and stable inflation and interest rates, as well as the treasury’s power to spend what it generates on economic and social comeback, as for example social and public investment programs.

What are Paraguay competitive advantages to attract FDI?

Paraguay boasts an attractive tax system. There is no country that offers a more attractive tax regime than Paraguay: a 10% income tax rate, 10% personal income tax, and a maximum of 10% VAT. There are also other laws that create incentives for the export of machinery and capital goods.
Clearly for tax-related issues Paraguay offers significant advantages. However, this has not been enough to achieve a greater volume of foreign direct investment, and the Ministry strongly encourages investment.
Everything needs to be built from the ground up, however the country offers enormous opportunities and potential, as Paraguay has everything that the region needs.
Paraguay has very productive and fertile lands, natural resources, water, clean renewable energy at a very competitive price, as well as a young population.
Experience has taught us that businesspeople and investors look to Paraguay because despite the fact that its young population is not always highly qualified, it is highly trainable.
Young people, who want to work and have a commitment and desire to learn. This is what generates more interest for the investors.

What are your comments on the outlook given by Standard and Poor’s?

In the specific case of Paraguay, the probability of having an improvement in the rating would be difficult due to current the regional economic situation. However, I believe it is extremely important to highlight that, if we look at all Latin American countries, there are only three countries with a stable outlook according to three rating agencies, which are Paraguay, Chile and Peru.
All the other countries have at least one qualifier that gives them a negative outlook.
This conveys confidence on Paraguay, which enjoys an economic framework allowing it to face the challenges of the present economic situation.
Despite the current recession, Paraguay keeps growing and generating job opportunities. This is outstanding as it not only shows that Paraguay does not depend on the region and on the rest of the world entirely, but that this small and open economy has opportunities to continue expanding in the coming years through its own efforts.

What is your message of confidence to investors?

Paraguay has made very important progress in economic terms, which today allows us to offer opportunities to local and foreign investors, even if in a less favorable scenario than the one we had until 2014. We offer opportunities, clear rules of the game, and business opportunities which will be very welcome for Paraguay and for investors.