Paraguay Basic Information

By | July 21, 2022
Basic data
Capital Asunción
Population 7.22 million
Language Spanish, Guarani
Religion 95% Christianity
State system presidential republic
Head of State Mario Abdo Benítez
Head of government Mario Abdo Benítez
Currency name Guaraní (PYG)

Paraguay Basic Information

Travel
Time shift – 4 hours (in summer -6 hours)
Economy 2021
Nominal GDP (billion USD) 42.2
Economic growth (%) 4.5
Inflation (%) 4.8
Unemployment (%) 6.5

Diplomatic relations between Czechoslovakia and the Paraguayan Republic were established at the embassy level on February 14, 1936, and were never formally severed. The Czech Republic is represented in Paraguay through an embassy based in Buenos Aires, the embassy of Paraguay for the Czech Republic is based in Vienna. The Honorary Consulate of the Czech Republic in Asuncion was opened in August 1993. The Honorary Consulate for Paraguay operates in Prague.

The head of state is the president, who has a five-year mandate, without the possibility of re-election. The current president, Mario Abdo Benítez, should remain in office until 2023.

Paraguay remains a rather less important economic partner of the Czech Republic in Latin America. In the past, the not very stable political and economic situation limited the possibilities of Paraguayan importers to develop new business activities. In recent years, however, the country has implemented a pragmatic policy with the aim of making it as easy as possible for foreign companies to invest in Paraguay, which is also reflected in the increased interest of Czech companies in this market. High levels of corruption, security threats from insurgent groups and weak institutions remain a problem.

Paraguay is highly dependent on the export of a few agricultural commodities. When the prices of these commodities are low on world markets or in case of bad weather, the Paraguayan economy experiences worse times. Paraguay primarily exports soybeans and, thanks to co-ownership of two large hydroelectric plants, also surplus electricity to Argentina and Brazil. The share of these two items in total exports varies each year depending on the season, agricultural prices and the purchase of electricity by neighboring countries. However, they are always in the range of 18-25%. These are absolutely dominant groups of goods. Other important export items are vegetable oils, meat and cereals, each accounting for 10-15% of Paraguayan exports. Exports from Paraguay are thus very strongly concentrated in a few items.

In imports, the most important purchases are chemical and plastic products, machinery and equipment, petroleum products, electronics and automobiles. A specific feature of Paraguay is the significant share of re-exports in the total trade balance. This is due to the proximity of the markets, which are among the largest in Latin America and, in addition to legal, illegal business also takes place through them. In the vast majority of cases, consumer goods (clothing, electrical appliances, alcohol and cigarettes) from these markets go to Brazil. The biggest deals take place in Ciudad del Este, Pedro Juan Caballero and Saltos del Guaírá.

One third of exports goes to Brazil (33%), 23% to Argentina, 8% to Chile, 5-7% to Russia. On the import side, China is in first place with 34%, followed by Brazil with 21%, followed by Argentina, the USA and Japan.

This Summary Territorial Information is processed for a country that is so-called accredited. The information is provided in an abbreviated form.

Basic information about the territory

Subchapters:

  • System of governance and political tendencies in the country
  • Foreign policy of the country
  • Population

The system of governance and political tendencies in the country

Republic of Paraguay (República del Paraguay)

President: Mario Abdo Benítez, Vice President: Hugo Velázquez

The president is also the prime minister, he chooses his ministers. The Congress consists of two chambers: the Senate with 45 members elected for 5-year terms and the Chamber of Deputies with 80 members also elected for 5-year terms. Check diseaseslearning to learn more about Paraguay political system.

The Paraguayan administration is not very successful in maintaining peace in the country and fighting its typical evils, such as organized crime, illegal trade, corruption and illegal work.

Foreign policy of the country

Paraguay is a member of the MERCOSUR association (Argentina, Brazil, Paraguay, Uruguay). The country has long pointed to the need for a flexible and open approach in the coming years. However, the problem is the fact that regional integration has stagnated in recent years due to disagreements between individual countries. Total fragmentation is evident, old schemes do not work and new ones do not emerge. The onset of the coronavirus pandemic deepened this trend. Check themotorcyclers for Paraguay defense and foreign policy.

The Paraguayan government has previously recognized Juan Guaidó as the legitimate president of Venezuela, becoming the first member of the Lima Group to cut diplomatic ties with the country.

Paraguay has long supported Taiwan in its dispute with China. Economic and trade relations with this country have deepened, and thanks to the help that Paraguay receives from this Asian country, it has been possible to finance various projects. Taiwan is a major supporter of the Paraguayan economy. An agreement is also being planned that will enable exchange stays for students. Paraguay does not trade directly with China.

Population

Paraguay has undergone considerable demographic expansion over the past 150 years. To date, it has over 7 million inhabitants, and with an average annual increase of over 1 percent, it is one of the countries with an ever-growing population. In 2050, the population could reach a level of around 12 million. Paraguay is still a young society, 30% of people are under 15 years old. Most of the population lives in cities, especially in the east and south of the country. 55% of the population have European ancestry, 38% are indigenous, and around seven percent of Paraguayans have African ancestry. Paraguay is the country with the largest share of Christians in Latin America, with over 93% of the population professing Christianity, closely followed by Judaism and Islam.