Only last week, Horacio Cartes, Paraguay’s new president, was waxing lyrical about his country’s ability to grow at 7 or 8 per cent a year “on a permanent basis”.
At the time he said that this would be achieved by raising investment levels, especially in infrastructure and agriculture – but it looks like there may be a bit more to it than that.
On Monday, the government said it didn’t have enough money to pay all public servants, which account for about 4 per cent of the country’s 6.6m inhabitants. Read more
Paraguay’s new president, the tobacco magnate Horacio Cartes, admits to having an “obsession”: his country’s economic growth rates.
Certainly, they are impressive. Paraguay’s double-digit growth this year will make it one of the fastest expanding economies in the world. Read more
Paraguay’s economy is on fire. Gross domestic product surged by a jaw-dropping 14.8 per cent in the first quarter, compared with the same period last year.
There is, mind you, more to that than meets the eye – as becomes apparent when you spy the quarter-on-quarter numbers (a rise of 8.8 per cent in the first quarter this year compared with the fourth quarter last year). Read more
Seek and ye shall find … even if it is not what you were looking for.
That, at least, is what has happened to US-Chilean company, Darmatal, in Paraguay. As interest increases in Paraguay’s hydrocarbons potential, Darmatal was exploring for oil. Instead, it found iron. Read more
Judging from Thursday’s successful Paraguayan bond sale, bond investors are clearly more desperate to find a good return somewhere – anywhere – then they are interested in constitutional niceties.
Paraguay agreed to sell $500m in bonds at 4.625 per cent, at the bottom of the guidelines of 4.625 per cent to 4.75 percent and far below earlier talk of 5 per cent, Reuters reported. Even more impressively, Paraguay came in under its neighbor Bolivia, which sold $500m in bonds in October at 4.875 per cent. Read more
It sounds ominous when the company planning one of the biggest investments in a country’s history says it is watching developments closely.
But here is what Rio Tinto Alcan has said about the impact of Paraguay’s unfolding political crisis on its plans to build a $4bn aluminium smelter. Read more