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. Continue reading »
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. Continue reading »
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). Continue reading »
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. Continue reading »
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. Continue reading »
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. Continue reading »