country presentation paraguay - 2011 rdx[1]
TRANSCRIPT
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Paraguay
Land of opportunities
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General Information
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Paraguay, in the center of South
America
Equator line
Greenwich Meridian
+4 +3 0+1+2
Cancer Tropic
Capricorn Tropic
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Facts and figures
Area (km2): 406.752
Languages: Spanish and Guaran
Currency: Guaran (Since 1943)
Exchange rate
(US Dollar Guarani):
1 USD = 4,640 Gs.
Population (2009): 6,273,103
Nominal Gross Domestic Product
GDP (Bill. US$):
17.8
Nominal Per Capita Gross Domestic
Product GDP (US$):
2,733
Country`s Capital: Asuncin
Other important cities: Ciudad del Este,
Encarnacin, Concepcin
Working Age Population WAP (2009): 3,163,241
Rate of unemployment (2009): 6.4% of the WAP
Brazil
Asuncin
Source: Direccion Nacional de Estadsticas, Encuestas y Censos (www.dgeec.gov.py)*Projection for 2010, according to the Central Bank of Paraguay - BCP
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Regions of Paraguay
97%Of total
population
60%Of the total
area
40%Of total
area3%Of total
population
Total Area (km2) Population
406,752 6,273,103
Source: Direccin Nacional de Estadsticas, Encuestas y Censos (www.dgeec.gov.py
)
Western Region orChaco
Eastern Region
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Structural Resources
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Access to attractive markets
Paraguay is located in the centerof the region with the highest
income of South America.Brasil
Per
Chile
Argentina Uruguay
Bolivia
Ecuador
Venezuela
Colombia
Guayana
Guayana FrancesaSurinam
SouthAmerica(100%)
Mercosur(70%)
Paraguay +1.300 km
Population(MM people)
360 250 120
GDP Mill USD 2875 1948 927
GDP per capita
(USD) 7986 7792 7725
Source: 2009 Latin American Statistic Yearbook - ECLACwww.eclac.org
33% of South America s GDP
33% of South America`s Pop.
96% of South America's average percapita Income
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Ideal natural conditions A big
water reserve
Rio
Paraguay
Rio
Paran
RioPilcomayo
Paraguay is
located in thecenter of theGuarani Aquifer
Average yearlytemperature: 24 C
Average yearly
rainfall: 1.200 mm.
Source: Instituto Geogrfico MilitarIGM & DGEEC
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Young and trainable laborforce
Paraguay has one of the youngestpopulations in America.
0
10
20
30
40
50
60
70
80 73,7 73,467,4 65,7
60,1 59,954,8
Population younger than 34 years old (%)
Sources: Direccin Nacional de Estadsticas, Encuestas y Censos (www.dgeec.gov.py)
Worldmapper (www.worldmapper.net)
http://www.dgeec.gov.py/http://www.worldmapper.net/http://www.worldmapper.net/http://www.dgeec.gov.py/ -
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Lower Risk of Natural Disasters
Earthquake risk Tsunami riskSevere weather conditions riskVolcano eruption riskTectonic plaques
Source: US Geological Survey (www.usgs.org)
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Low cost of living
Asuncin, is the 3rd. Capital of theAmericas that has the lowest costfor living.
Source: Mercer Consulting Group 2010 (www.mercer.com)
Cities Ranking
Managua 1
La Paz 2
Asuncin 3
Quito 4
San Jos 5
Guatemala 6
Mxico D.F. 7
Kingston 8
Buenos Aires 9
Panam 10
Santiago 11
Caracas 12
Toronto 13
Bogot 14
La Habana 15
Nueva York 16
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Regional Logistics
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Rosario
Nueva Palmira
Antofagasta
ParanaguaASU
An important waterway in the
Region. Paraguay Parana.
Rio
Paraguay
SantosCDE
Mejillones
Conchas
Corumb
Montevideo
Sao Paulo
Buenos AiresSantiago
Santacruz
Main Commercial Centers
Paraguayan free ports
Important regional ports
Barges
Transatlantic Ships
Source: Rediex
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Expanding Roads Network
ASU
La Paz
Montevideo
Buenos AiresSantiago
Sao Paulo
Santacruz
Santos
Campo Grande
RJ
Belo Horizonte
Brasilia
Porto Alegre
Cuiab
Crdoba
Jujuy
ENCSalta
Curitiba
PJC
CDE
Ponta Por
Resistencia
Source: IIRSA www.iirsa.org
Rosario
Antofagasta
Paranagua
N. Palmira
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MejillonesSepetiva
Agribusiness
Iron Mines
Hidroelectricity
Natural Gas
Agribusiness
The 2nd largest producer ofethanol
The 2nd largest producer ofsoybeans
Largest producer of hydroelectricity
The 2nd world's freshwaterreserves
The 5th world oil reserves
Regional economics potentials
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Energy for the future
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Source: Administracin Nacional de Electricidad (www.ande.gov.py)
ENTIDAD BINACIONAL YACYRETAFINAL POWER: 1.550 MWFINAL ENERGY: 10.500 GWh/AOPARTICIPATION: 10 %
CENTRAL ACARAYFINAL POWER: 252 MW
ENERGY: 950 GWh/YEAR
PARTICIPATION: 5 %
ITAIPU BINACIONALPOWER: 7.000 MW
ENERGY: 37.500 GWh/YEARPARTICIPATION: 85 %
Hidroelectrical energy
National Average Rate of
Consumer GroupYear 2009
Consumer Group US$/kWh
Residential 0.0745
Commercial 0.0713
Industrial 0.0488
General 0.0587
Street lighting 0.0838
National Average Rate 0.0652
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Low production costs
Traditional Industry Consumption in US$/MWh(CIER Accounts)
Companies Ib Ic Ie If IiCompaa Estadual deDistribucin de Energa
Elctrica (CEEE-D)176 176 151 165 111
Compaa Energtica de
Minas Gerais (CEMIG) 214 214 200 214 133
Compaa Energtica deCeara (COELCE) 208 208 182 194 130
Compaa Paranaense de
Energa (COPEL) 157 157 149 176 117
Light - Servicios deElectricidad S.A. (LIGHT) 163 163 175 194 113
Administracin Nacionalde Electricidad (ANDE) 61 61 45 41 27
NOTES:
1. Ib corresponds to a low voltage consumption 2,000 kWh / month
2. Ic corresponds to a low voltage consumption 5,000 kWh / month3. le consumption corresponds to a medium voltage with 100 kW power and energy of 25,000 kWh / month4. IF consumption corresponds to a medium voltage with 300 kW power and energy of 50,000 kWh / month5. Ii corresponds to a high-voltage consumption of 10,000 kW power and energy of 5,000,000 kWh / month
Source: Administracin Nacional de Electricidad (www.ande.gov.py)
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Hidroelectrical power in MW
Source:Administracin Nacional de Electricidad (www.ande.gov.py)
Mw 2000 2005 2010 2015 2020 2025
Demand 1.120 1.354 1.831 2.374 2.987 3.780
Availability 6.290 6.056 6.929 6.628 6.015 5.222
Offer 7.410 7.410 8.760 9.002 9.002 9.002
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9.000
10.000
20002005
20102015
20202025
Demand
AvailabilityOffer
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International Trade
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X+M/PIB (in %)
Country 2003 2004 2005 2006 2007 2008 2009
Argentina 34 37 38 38 38 29 17
Brasil 22 25 22 21 22 23 15
Paraguay 56 61 66 69 72 79 80
Uruguay 39 46 43 45 44 48 30
%
Economic Opening
http://www.bcp.gov.py/http://www.bcp.gov.py/ -
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Imports/Exports - Market
Destination in %
US$ Millions 2002 2003 2004 2005 2006 2007 2008 2009
*Exports 1.858 2.170 2.861 3.351 4.409 5.463 7.768 6.191
Imports 2.137 2.446 3.105 3.814 5.022 6.008 8.809 6.940
Source: Banco Central del Paraguay - www.bcp.gov.py
*Includes: Exports + Reexports
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Imports/Exports
Source: Banco Central del Paraguay - www.bcp.gov.py
*Includes: Exports + Reexports
0
2000
4000
6000
8000
10000
20042005
20062007
20082009
2010
Exportaciones
Importaciones
US$ Mill. 2004 2005 2006 2007 2008 2009 2010
Exports 1.631,6 1.627,5 1.788,5 2.745,1 4.390,0 3.167,0 4.555,5
Imports 2.660,3 3.160,8 4.743,8 5.840,9 8.977,3 6.829,2 9.913,5
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Business Climate
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Paraguay has one of the lowest tax burdens in the world
Tax
Burden
(Taxes / GDP)
Sources: Organization for Economic Co-operation and Development (www.oecd.org)
Direccin Nacional de Estadsticas, Encuestas s y Censos (www.dgeec.gov.py)
Low tax burden
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Corporate Income Tax Rate
This tax has been lowered 66% from 30% to 10% in 2004
0%
5%
10%
15%
20%
25%
30%
35%
40%
Argentina Colombia Brasil Per Uruguay Ecuador Chile Paraguay
35%34% 34%
30%
25% 25%
17%
10%
Source: Ministry of Finance www.hacienda.gov.py
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Personal Income Tax
Source: Ministry of Finance www.hacienda.gov.py
Averiguar Uruguay0 5 10 15 20 25 30 35 40
Paraguay
Uruguay
Ecuador
Brasil
Peru
Colombia
Argentina
Chile
10
25
25
28
30
35
35
40
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Value Added Tax (VAT)
0% 5% 10% 15% 20% 25%
Brasil
Uruguay
Argentina
Chile
Per
Colombia
Ecuador
Paraguay
25%
23%
21%
19%
19%
16%
12%
10%
Source: Ministry of Finance www.hacienda.gov.py
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Delaing with construction permits
Trade facilitation
Source: SUAE (www.suae.gov.py) & VUE (www.vue.org.py)
One Step System for
Exporter
Paraguay stood out as the secondeconomy in the world who have most
improved this indicator, according to
Doing Business 2011
ComparisonArea
Traditional
methodAfter
Time
in days74
30
currentaverage
Steps 17 1
Estimated
CostsUSD 840 USD 100
"The One Step System forExporter is a concept createdunder broad national priority withideal projection and the
integration of SMEs in foreigntrade.
From a historical average of 700,currently are enrolled andregistered 2600 companies.
Business Opening Process
http://www.suae.gov.py/http://www.vue.org.py/http://www.vue.org.py/http://www.suae.gov.py/ -
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Macroeconomic Stability
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Source: Central Bank of Paraguay - www.bcp.gov.py*Projection for 2010, according to preliminary data of the BCP
Economic Growth
5.552
6.9737.505
9.289
12.260
16.874
14.255
17.680
2003 2004 2005 2006 2007 2008 2009 2010*
GDP Evolution in ParaguayPIB Mill. US$
3,8%
4,1%2,9%
4,3%
6,8%
5,8%
-3,8%
14.5%
GDP (US$ Mill.)
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Source: Banco Central del Paraguay - www.bcp.gov.py*Incluedes Construction, electric & water services
Primary Sector 53%
Manufacturing* 11%
Commerce & Services 30%
Others 6%
GDP Share by sectors
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Inflation
Source: Banco Central del Paraguay - www.bcp.gov.py*Preliminay data yr. 2011
IPC %
0
5
10
15
2002 2003 2004 2005 2006 2007 2008 2009
2010 2011
14,6
9,3
2,8
9,9
12,5
6,0 7,5
1,9
7.26,3*
CPI %
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Fiscal Balance/GDP
Source: Ministerio de Hacienda* Set/2010
-1,2
-3,24
-0,4
1,590,77 0,51
0,96
2,49
0,06
2,8*
-4
-3
-2
-1
0
1
2
3
4
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Fiscal Balance (last 9 years)
Deficit/Surplus as a % of GDP
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Source: Banco Central del Paraguay - www.bcp.gov.py
2003 2004 2005 2006 2007 2008 2009 2010
US$ Reservas 983 1.168 1.297 1.980 2.420 2.638 3.857 4.422
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
US$Mill.
International Reserves in US$
International Reserves
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External Debt/GDP
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
34,1 34,1
44,2 43,3
34,4
23,8
18,6
13,3 14,1 12,4
External Debt %
Deuda Externa/PIB
Source: Banco Central del Paraguay - www.bcp.gov.py
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Investment Incentives
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60/90 Investment Law
Import tariff on Capital Goods(machinery and equipment)
Taxes on capital transfer(applied for investments of more than USD 5MM)
0%
Source: Ministry of Finance www.hacienda.gov.py
0%
Value Added Taxes (IVA) on importof Capital Goods 0%
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MERCOSUR rules of origin
Paraguay enjoys special treatment regarding rules of origin of manufactured products
until 2023
It is easier to acquire origin in Paraguay vs. Mercosur
-10%
0%
10%
20%
30%
40%
50%
60%
Brasil Uruguay Argentina Paraguay
60% 60% 60%40%
Necessary regional content %
* If the service is provided by a Company established in Paraguay
Source: Mercosur 01/04 decision www.mercosur.int
Raw
materials
Parts &
components
Labor
Services
Energy, water
Import
Freights*Extra-zone
imported components
40%
60%
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Maquila Regime
TO PRODUCE:
GOODS AND SERVICESFOR EXPORT
ContractMAQUILA
ENTERPRISE
HEAD
OFFICE
SUB MAQUILA
ENTERPRISE
Single tax rate of 1% over salesinvoicing
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Investment Opportunities
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Important Potential Sectors
Meat & Leather
Forest Products
Tourism
Cotton, textil & apparel
Biofuels
TICs
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Important Potential Sectors
Stevia
Fruits & Vegetables InfraestructureEcoturism
MetalurgicCall Centers
Oils
Energy
http://images.google.com/imgres?imgurl=http://1.bp.blogspot.com/_kdKWRjTUu0E/Sj4ao3MVURI/AAAAAAAAAoU/lT8wEYLgSKI/s400/vista-puerto.jpg&imgrefurl=http://chiquipuertos.blogspot.com/&usg=__FWchP1iHsVWWVYcJnpDxU2kwhUQ=&h=264&w=400&sz=17&hl=es&start=9&um=1&tbnid=6pMVOLc0NtR_SM:&tbnh=82&tbnw=124&prev=/images?q=hidrovia+maquinaria&hl=es&lr=&rls=com.microsoft:*:IE-SearchBox&rlz=1I7ADBF_es&um=1http://images.google.com/imgres?imgurl=http://upload.wikimedia.org/wikipedia/commons/5/5d/Salto_Monday_vistacaida_agua_cuerda_bajan1.png&imgrefurl=http://commons.wikimedia.org/wiki/File:Salto_Monday_vistacaida_agua_cuerda_bajan1.png&usg=__0qcVjeT9zR14VguiqMIWu5hMYQs=&h=1024&w=1277&sz=1315&hl=es&start=9&um=1&tbnid=0r-gn2KViUmY_M:&tbnh=120&tbnw=150&prev=/images?q=salto+monday&hl=es&rls=com.microsoft:*:IE-SearchBox&rlz=1I7ADBF_es&um=1http://images.google.com/imgres?imgurl=http://spb.fotolog.com/photo/59/58/57/aguns/1222363635694_f.jpg&imgrefurl=http://www.fotolog.com/aguns/53664778&usg=__EHFZKp0W-1H6M3EMtEXso_8ZFns=&h=389&w=292&sz=30&hl=es&start=1&um=1&tbnid=WO-KvcNYzF_cVM:&tbnh=123&tbnw=92&prev=/images?q=metalurgico&hl=es&rls=com.microsoft:*:IE-SearchBox&rlz=1I7ADBF_es&um=1http://images.google.com/imgres?imgurl=http://www.nationalbuyers.co.uk/sellandrent/images/Callcenter.jpg&imgrefurl=http://www.nationalbuyers.co.uk/sellandrent/call-me-back.html&usg=__yLOsTIdUeUPjMlQ9x1J-8XHwRtg=&h=314&w=429&sz=42&hl=es&start=7&um=1&tbnid=FYfJ1gDgTTeQhM:&tbnh=92&tbnw=126&prev=/images?q=call+center&hl=es&rls=com.microsoft:*:IE-SearchBox&rlz=1I7ADBF_es&um=1http://images.google.com/imgres?imgurl=http://www.biodiesel.com.ar/zenphoto/zp-core/i.php?a=biodiesel&i=aceite-soja-soya-soybean-oi.jpg&imgrefurl=http://biodiesel.com.ar/?p=266&usg=__dT7UaaqyvFpUkzbJgkDEJuB7B3Y=&h=293&w=412&sz=10&hl=es&start=3&um=1&tbnid=YYIfm6uNWAWMkM:&tbnh=89&tbnw=125&prev=/images?q=aceite+de+soja&hl=es&rls=com.microsoft:*:IE-SearchBox&rlz=1I7ADBF_es&um=1http://images.google.com/imgres?imgurl=http://luduran.files.wordpress.com/2008/02/energia2.jpg&imgrefurl=http://luduran.wordpress.com/2008/02/27/la-energia-es-el-tema-politico-de-2008/&usg=__kgkPz1Wk1rZQLQkKUd4ieew8trs=&h=547&w=865&sz=112&hl=es&start=24&um=1&tbnid=VP1u4oDCDoe1WM:&tbnh=92&tbnw=145&prev=/images?q=energia&ndsp=18&hl=es&rls=com.microsoft:*:IE-SearchBox&rlz=1I7ADBF_es&sa=N&start=18&um=1 -
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Fuente: CIP
M I CMillicomInternational
Celular S.A
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Fuente: CIP
BANCO
DO
BRASIL
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Mcal. Lpez 3333esq. Dr. Weiss
Asuncin
ParaguayTel: + (595 21) 616 3000Telefax: + (595 21) 616 3000
www.mic.gov.py
Mcal. Lpez 3333esq. Dr. Weiss
Asuncin
ParaguayTel: + (595 21) 616 3006Telefax: + (595 21) 616 3034
http://www.mic.gov.py/http://www.mic.gov.py/mailto:[email protected]:[email protected]://www.mic.gov.py/http://www.mic.gov.py/mailto:[email protected]://www.mic.gov.py/http://www.mic.gov.py/