A. Country Data 1. Profile --Population: Paraguay's population is around 4,400,000, with an annual growth rate close to three percent. The population density is 11 inhabitants per square kilometer (28 persons per square miles). About 90 percent of the population is of Hispanic-Guarani descent and 50 percent is less than 18 years old. The majority of the population is concentrated in the eastern region of the country and about half of the population is settled in urban areas. --Religion: The new 1992 Paraguayan constitution abolished state official religion and established freedom of worship, cult and ideology. The majority of Paraguayans are Roman Catholics. --Government System: Paraguay is a representative republic. The state consists of three powers. The executive branch is headed by the president of the republic who is elected by direct vote for only one five-year term. The legislative branch consists of two chambers, the senate and chamber of deputies. Members are elected by popular vote for a five-year period and are eligible for reelection. The Chamber of Deputies has 80 members, apportioned among the seventeen departments and the capital. The Senate has 45 members based on national representation. The judicial branch consists of the Supreme Court of Justice, made up of nine members, courts of appeal and various court districts. The country is divided politically and administratively into 17 departments governed by popularly elected governors, and into municipalities governed by around 200 elected mayors. --Languages: The official language is Spanish, but the national native language is Guarani. English, Portuguese and German are also understood by the business community in general. --Work Week: For persons over 18 years of age official work times are eight hours per day or 48 hours per week. For night shifts, working hours must not exceed seven hours per day, or 42 hours per week. Unhealthy work performed by workers cannot exceed six hours a day or 36 hours a week. Employers may increase normal work hours as overtime for special reasons. Overtime must not exceed three hours daily or occur more than three times a week and when added to normal work hours, cannot exceed 56 hours a week. Commercial working hours are typically from 8:00 am to 12:00 noon and 3:00 pm to 7:00 pm. Monday through Friday, and 8:00 am to 12:00 noon on Saturdays. Banking hours are from 8:45 am to 4:00 pm Monday through Friday, but the public is received only up to 12:15 pm. 2. Domestic economy (US$ millions, except where noted) 1993 1994 1995/1/ ----- ----- ----- --GDP 6,923 7,150 7,300 --GDP growth rate 1995 (pct) 3.7 3.5 4.0 --GDP per capita 1,538 1,548 1,580 --Govt. Spending as pct of GDP 14.2 16.7 16.0 --Inflation (pct) 20.4 20.0 15.0 --Unemployment (pct) 11.0 12.0 12.0 --Foreign exchange reserves 700 900 800 --Avg.exchange rate for US$1.00 1,750 1,950 2,200 --Foreign debt 1,217 1,240 1,300 --Debt service ratio (ratio of principal and interest payments on foreign debt to foreign income) 2.3 2.2 2.0 --U.S. Econ/military assistance 4.4 5.0 6.5 /1/ estimate. 3. Trade (US$ millions, except where noted) 1993 1994 1995/1/ ----- ----- ----- --Total country exports 750 Na Na --Total country imports 1,700 Na Na --U.S. exports 520 Na Na --U.S. imports 55 Na Na --U.S. share of host country Imports (pct) 30 Na Na Imports of manufactured goods: --Total (from world) 1,700 Na Na --From the U.S. 520 Na Na --U.S. share of manufactured imports (pct) 30 Na Na --Manufactured goods trade balance with the U.S. -465 Na Na --Projected avg. annual growth rate from world thru 1996(pct) 12 Na Na --Projected avg. annual growth rate from U.S. thru 1996 (pct) 15 Na Na Imports of agricultural goods: --Total (from world) Negligible --From the U.S. Negligible --U.S. share of agricultural imports (pct) Na --Agricultural goods trade balance with the U.S. Na /1/ estimate. Trade balance with five leading partners in 1993: --United States -465 --Brazil -142 --Japan -170 --Argentina -150 --Netherlands +153 Principal U.S. exports in 1993: --8473 parts, etc., for typewriters and other office machines. --8471 automatic data processing machines; etc. --2402 cigars, cigarettes, etc., of tobacco or substitutes. --8536 electrical apparatus for switching, etc. --8517 electric apparatus for line telephoning, etc., parts. Principal U.S. imports in 1993: --4104 bovine or equine leather. --4408 veneer sheets, etc. --2906 cyclic alcohols, etc. --4412 plywood, veneer panels, & similar laminated wood. --4408 veneer sheets, etc. 4. Investment Foreign investment statistics are not available from official sources. However, unofficial sources reveal that foreign investment projects approved in 1993 amounted to U.S. dollars seventy million, broken down as follows: Approved Foreign Investment Projects - 1993 No. Of US$ Countries Projects Million --------- -------- ------- Argentina and Luxemb. 1 31.9 Argentina 29 12.5 Brazil 10 7.9 United States 7 5.3 Spain 6 1.9 United Kingdom 1 3.5 France 2 1.2 China 5 2.2 South Africa 1 1.5 Other 10 2.1