Paraguay unveils US$1.5bn plan to boost economic growth

The Paraguayan government unveiled a US$1.5bn high-impact investment program to boost the domestic economy between this year and next, with the bulk of the funds (1.2bn) being allocated for 2019.

In the presentation of the program, finance minister Benigno López said that the program will have three main components: acceleration of public works, strengthening social aid programs and boosting production and trade, the presidency’s office said in a release.

On the infrastructure front, the program outlines US$572mn for road projects. The initiatives that will be benefited from this include the widening of the Ruta 2 and Ruta 7 highways, the rehabilitation of Ruta 9, the Costanera Sur highway and the Carmelo Peralta-Puerto Murtinho bridge.

Meanwhile, energy transmission, distribution and generation projects will receive US$235mn, while education infrastructure and development will receive US$95mn.

In terms of other social infrastructure, hospitals and water and sanitation system projects will get US$43mn, while US$20mn will be for housing.

Works performed by departmental and municipal administrations will receive US$18mn and social assistance programs will receive around US$115mn.

In this regard, US$39mn will be used to support home-buyers in vulnerable sectors, while the Bono Campesino program, which provides financial aid to 40,000 rural families, will get US$29mn.

Lastly, actions aimed at boosting production and trade will receive US$254mn in investments. n this area, the government aims to increase economic activity by introducing new loans, while authorities will seek to lower tariffs on imports of capital goods for a six-month period and set up duty-free stores near overland border points to boost shopping by tourists.

López said that these measures are expected to benefit 150,000 residents, while also creating 50,000 new jobs.

Last month, after a meeting with President Mario Abdo, cabinet chief Julio Ullón said that the government would seek to speed up investments and budget execution, after it was reported by local media that the president was not satisfied by the performance of ministers on the investment front.