Abencys Global Services Works in South and North America. Currently most of its activities are developed in South America, particularly in the Republic of Paraguay.
PARAGUAY, AN OPEN, GROWING COUNTRY
Abencys Global Services operates in Paraguay with the purpose of delivering an outstanding advice on the field of investment and incorporation of new companies, as well as long-standing companies that discover Paraguay as a new market to be developed as a market for their products.
Paraguay is a politically and economically stable country, strategically located and with free access to Mercosur. It has plenty of natural resources, labor costs are very competitive and the tax burden is low.
It is a landlocked country with relevant waterways and a river coast provided by the Paraguay and Parana rivers that flow into the River Plate. Both can be navigated and Paraguay has sovereignty over them.
Both rivers are waterways that allow reaching the sea; several regional conventions guarantee Paraguay’s free, unrestricted Access to maritime harbors such as Nueva Palmira at Uruguay.
Paraguay’s Rank in international trade:
1º Renewable energy
3º Barge manufacturer
4º Largest soy oil exporter
6º Largest corn exporter
6º Largest beef meat exporter
6º Largest wheat exporter
By way of summary:
Economic stability: Economic growth in 2013 was 14%.
This is due to the sound development of the farming and livestock sectors, the beef industry and the strength of the public and private civil works sectors. The industrial sector is also developing at a growing pace and commerce and other service industries, such as transport, communications and financing are performing well, too. They grew by 4,8% in 2014.
Availability of natural resources: Paraguay has an excess of power generation at a stable price, guaranteed by the Guaraní groundwater.
Young labor force: It has the youngest population of Latin America and the lowest labor cost within Mercosur.
Preferential access to large markets: since 2014 it is the only Mercosur member with a preferential access to the UE.
Low tax burden: Paraguay has enacted the most favorable tax and tax benefit scheme of the region. Companies’ tax is 10%, Income Tax is 10%, VAT is 10%. Capital repatriation is unrestricted.
Improvement in the risk rating: from Stable to Positive
Investment return: Paraguay is the country with the second highest investment return in Latin America and 10th worldwide.
Macroeconomic data: Paraguay’s 2014 GDP was close to 30 BN USD with a per capita income of 4.400 USD. Inflation in 2013 was 3,7 %.
The industrial sector represents 11,4 % of the GDP and it grows a yearly 6,5 % this is 20 times as much as Brazil.
Best positions in the production or export rankings of rice, wheat, soy, corn and beef.
LARGE INFRASTRUCTURE INVESTMENTS PLAN FOR 2015-2018
Infrastructure, Transportation and Logistics Master Plan
Committed investment for an aggregate amount of 7.5/8 BN USD until 2018.
13 strategic projects in Asunción plus 10 more throughout the country.
They will be implemented with private capital contributions channeled through:
- The Nº 5102/13 Bill for Promotion in Public Infrastructure Investment.
- The 5074/13 Bill setting specific conditions for private investment in public civil works
MACROECONOMIC PORTFOLIO PUBLISHED BY ABC COLOR
May 2016 inflation rate: 0,5%
* Accumulated Inflation 2016: 2,7%
* Inflation 2015: 3,1%
M0 Year-on-year change November 2015: 8,1%
M1 Year-on-year change November 2015: 7,1%
** Total population: 6.600.284 people
** Economically Active Population (EAP): 3.412.443 (64,3%- EPH 2012)
** Economically Inactive Population (EPH 2012): 1.896.426 (35,7%)
** Working Population: 3.246.904 (95,1% EPH 2012)
** Open Unemployment Rate (2015): 6,3% of the EAP
– Aggregate underemployment rate: 14,9% (ECE 2015)
– Aggregate Employment rate: 94% (ECE 2015)
– Labor participation rate: 66% (ECE 2015)
– Working population with social security coverage: 43%
– Population with access to electricity: 99% EPH 2014
– Homes with own house: 78,3% EPH 2014
** With their own vehicle: 68,7% EPH 2014
** With telephone (landline): 19,4%
** With Mobile phone: 95,2%
** With air conditioning: 30,3%
** With computer: 29,5%
** With internet access: 25,1%
** Population growth rate: 1,9%
* GDP (2015): US$ 29.855 BN
* Per capita GDP (2014): US$ 4,400
* Per capita GDP (2015): US$ 4,263
* Tax deficit (2015): G. 2,7 US$ BN
* External indebtedness (January 2016): US$ 3.969 BN
* Internal indebtedness (January 2016): US$ 1.469 BN
– US $ exchange rate (closing as on 16/06/17): G. 5.620
– Minimum salary: G. 1.824.055
* Private sector deposits (February 2016): G. 74.799 BN
* Credits granted by financial institutions to private sector (February 2016): G. 69,953 BN US$.
* Bank profitability rate (February 2016): 17,98
* Banking system solvency rate (November 2015): 40,09
* Bank arrears rate (February 2016): 2,86
* Recorded exports (May 2016): US$ 4.539 BN
* Recorded Imports (February 2016) US$ 1.367 BN
* Currency Reserves (March 31 2016): US$ 6.589 BN
(*) Source: BCP current US$ 1994 (**) DGEEC