Economic Overview
Landlocked paraguay has a market economy marked by a large informal sector. this sector features both reexport of imported consumer goods to neighboring countries, as well as the activities of thousands of microenterprises and urban street vendors. because of the importance of the informal sector, accurate economic measures are difficult to obtain. a large percentage of the population, especially in rural areas, derives its living from agricultural activity, often on a subsistence basis. on a per capita basis, real income has stagnated at 1980 levels. most observers attribute paraguay's poor economic performance to political uncertainty, corruption, limited progress on structural reform, and deficient infrastructure. the economy rebounded between 2003 and 2007, posting modest growth each year, as growing world demand for commodities combined with high prices and favorable weather to support paraguay's commodity-based export expansion.
Environmental Issues
Deforestation; water pollution; inadequate means for waste disposal pose health risks for many urban residents; loss of wetlands
Government Type
Constitutional republic
Population
6,831,306 (july 2008 est.)
Location
Central south america, northeast of argentina
Area
Total: 406,750 sq km
land: 397,300 sq km
water: 9,450 sq km
Slightly smaller than california
Country Aliases
Conventional long form: republic of paraguay
conventional short form: paraguay
local long form: republica del paraguay
local short form: paraguay
Capital
Name: asuncion
geographic coordinates: 25 16 s, 57 40 w
time difference: utc-4 (1 hour ahead of washington, dc during standard time)
Military Service
18 years of age for compulsory and voluntary military service; conscript service obligation - 12 months for army, 24 months for navy (2006)
International Disputes
Unruly region at convergence of argentina-brazil-paraguay borders is locus of money laundering, smuggling, arms and illegal narcotics trafficking, and fundraising for extremist organizations
Sources: Central Intelligence Agency (CIA)
