Week 15, 2025 - Latin America

Newsletter
Episode 2: Turning Challenges Into Opportunities | Paraguay: The Hidden Gem of Latin America. While Episode 1 looked at Paraguay’s economic foundations, Episode 2 explores what lies ahead. What makes this country’s future so promising, and why should the world take notice?
Published on
April 25, 2025

"As long as I'm a good person and I do things from the heart, that's all that matters." - Gisele Bündchen (Brazilian fashion model)

MARKETS

April 10, End Of Day

BUSINESS

Episode 2: Turning Challenges Into Opportunities | Paraguay: The Hidden Gem of Latin America

While Episode 1 looked at Paraguay’s economic foundations, Episode 2 explores what lies ahead. What makes this country’s future so promising—and why should the world take notice?

1. Long-Term Vision in a Short-Term World

  • Paraguay holds the lowest debt-to-GDP ratio in Latin America
  • Leaders emphasize a generational mindset: investing today to benefit tomorrow.
  • Fiscal discipline is creating a stable base for long-term development.

2. Stability + Low Taxes

  • Two decades of steady growth and declining poverty have built investor confidence.
  • A 10% corporate tax rate and pro-investment reforms offer rare advantages in the region.

3. Young Population

  • With a median age of 26, Paraguay has a vibrant, trainable workforce.
  • This demographic edge is a key driver of innovation and competitiveness.

4. Turning Challenges Into Business Models

  • Big problems create space for big solutions—especially through tech.
  • Financial inclusion jumped from 54% to 76% in two years, led by digital pioneers.
  • Entrepreneurs are solving real issues, not just chasing trends.

5. Green Energy and the Next Frontier

  • Itaipu Dam’s debt is paid off, freeing funds for infrastructure and industrial growth.
  • Paraguay exports 80% of its renewable energy but now aims to power local industry.
  • The ambition? Become the “Saudi Arabia of green energy” for the digital age.

🎬: Watch Episode 2 here.

CURRENT AFFAIRS

Panama: CK Hutchison said it has invested $1.7 billion in two Panama Canal ports, exceeding its obligations, amid a government audit of its concession. It noted $668 million in payments to the state and equal tax treatment to other port operators. The audit, tied to a $22.8 billion BlackRock deal and rising U.S.-China tensions, could complicate the transaction.

Nicaragua: President Daniel Ortega met with Huawei executives in Managua to discuss expanding cooperation with Chinese companies. The visit is part of Nicaragua’s broader strategy to strengthen ties with China, including promoting the revived interoceanic canal project and launching special economic zones to attract Chinese investment in sectors like mining and infrastructure. Ortega praised China’s development-focused leadership and reaffirmed interest in deepening bilateral relations.

Brazil: The government is preparing an additional offshore oil auction this year to raise revenue amid falling oil prices and trade uncertainty. The auction, expected as early as September, will include uncontracted portions of the Tupi, Mero, and Atapu pre-salt fields and could raise around $3.4 billion. The move aims to offset fiscal shortfalls as Brent prices remain well below budget projections, while Finance Minister Fernando Haddad reaffirmed the goal of eliminating the primary deficit in 2025.

FURTHER READING

Check our recently published insights here.

💼 FDI in Latin America & the Caribbean

  • Resilient Investment – FDI slightly declined by 1% to $193B in 2023, showing stability despite global uncertainty.
  • Greenfield Growth – Investments in critical minerals and renewables like green hydrogen are gaining momentum.
  • Digital Boost – Improved digital governance is enhancing transparency and ease of doing business.
  • Policy & Trade – Regional trade agreements and stable policies continue to attract long-term investors.

📖 Read more here.

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