Aaron O'Neill
Research lead for society, economy, and politics: Europe & global
Paraguay - Statistics & Facts
Paraguay is located in central South America between Brazil, Argentina and Bolivia. The country has had a history of conflict and authoritarianism up until the 1990s. Since then, its transition to democracy has been rocky and marked by the assassination of a vice president, a presidential resignation and an attempted coup. Paraguay’s population is unique in that the majority of the population speaks the indigenous language Guarani in addition to Spanish. Most other Latin American countries have lost many of their pre-colonial languages.
The capital and largest city in Paraguay is Asunción. The country's population is growing due to a moderate but decreasing fertility rate. This has resulted in a relatively high percentage of inhabitants under the age of 14. While the country is not quite as urbanized as other Latin American countries, its economy is transitioning to a largely market-based economy with an increasing focus on soy production - which in turn has also caused a decrease in the demand for farm labor and an increase in urban migration. However, unemployment remains relatively low.
Paraguay's economy is not exactly stable at the moment. GDP growth was weak and even negative in 2011 and 2012, around the same time the inflation rate spiked, but in 2013 the country experienced huge annual growth again. However, this level of growth could not be maintained in 2014, and only moderate growth is expected in the future. At present, GDP per capita is around 4,000 U.S. dollars, which is much lower than that of Latin America and the Caribbean as a whole.
The county’s primary economic activity involves subsistence farming, and agriculture contributes a large part to the nation's GDP. Yet, problems of land tenure have occurred, and inequality and social unrest remain a problem. The country is among the largest soy producers in the world, and more and more forest land is being destroyed to produce it. This has also resulted in the increased use of genetically modified crops and pesticides which contaminate the land and water in addition to cause a loss of biodiversity.
The capital and largest city in Paraguay is Asunción. The country's population is growing due to a moderate but decreasing fertility rate. This has resulted in a relatively high percentage of inhabitants under the age of 14. While the country is not quite as urbanized as other Latin American countries, its economy is transitioning to a largely market-based economy with an increasing focus on soy production - which in turn has also caused a decrease in the demand for farm labor and an increase in urban migration. However, unemployment remains relatively low.
Paraguay's economy is not exactly stable at the moment. GDP growth was weak and even negative in 2011 and 2012, around the same time the inflation rate spiked, but in 2013 the country experienced huge annual growth again. However, this level of growth could not be maintained in 2014, and only moderate growth is expected in the future. At present, GDP per capita is around 4,000 U.S. dollars, which is much lower than that of Latin America and the Caribbean as a whole.
The county’s primary economic activity involves subsistence farming, and agriculture contributes a large part to the nation's GDP. Yet, problems of land tenure have occurred, and inequality and social unrest remain a problem. The country is among the largest soy producers in the world, and more and more forest land is being destroyed to produce it. This has also resulted in the increased use of genetically modified crops and pesticides which contaminate the land and water in addition to cause a loss of biodiversity.
