Visit Paraguay

• Author: admin
• Filed under: Paraguay
• Date: May 22,2008

Paraguay is divided by the Rio Paraguay into the eastern region —officially called Eastern Paraguay (Paraguay Oriental) and known as the Paraneña region — and the western region — officially Western Paraguay (Paraguay Occidental) and also known as the Chaco.
The southeastern border is formed by the Paraná River, containing the Itaipu dam shared with Brazil. It is currently the largest hydroelectric power plant in the world, generating all the electricity required by Paraguay. Because Paraguay co-owns Itaipu Dam, they have the right to use 50% of electricity generated. Because they use less than 10% of that electricity produced, they sell the rest back to Brazil. Another large hydroelectric power plant on the Paraná River is Yacyretá, shared by Paraguay and Argentina. Paraguay is currently the world’s largest exporter of hydroelectric power.
The terrain is made up of grassy plains and wooded hills to the east. To the west, there are mostly low, marshy plains.
The local climate ranges from subtropical to temperate, with substantial rainfall in the eastern portions, though becoming semi-arid in the far west.
Paraguay has a market economy marked by a large informal sector that features both re-export of imported consumer goods to neighboring countries, and thousands of small business enterprises. Paraguay’s largest economic activity is based on agriculture, agribusiness and cattle ranching. Paraguay is ranked as the world’s third largest exporter of soybeans, and its beef exports are substantial for a country of its size. A large percentage of the population derive their living from agricultural activity, often on a subsistence basis. Despite difficulties arising from political instability, corruption and slow structural reforms, Paraguay has been a member of the free trade bloc Mercosur, participating since 1991 as one of the founding members.
Paraguay’s economic potential has been historically constrained by its landlocked geography, but it does enjoy access to the Atlantic Ocean via the Paraná River. Because it is landlocked, Paraguay’s economy is very dependent on Brazil and Argentina, its neighbors and major trade partners. Roughly 38% of the GDP derives from trade and exports to Brazil and Argentina.