10 Surprising Facts about Paraguay

I’ve been traveling around Paraguay for nearly three weeks so far. From what I’ve seen, it’s a very laid-back, tranquil country with lots of tropical jungles, agriculture and dairy farms and a low population density.

Through my personal observations, online research and chats with locals, I’ve learned some very surprising and interesting things about Paraguay, things you wouldn’t really expect from such a small, little-known country.

Following are 10 big surprises I learned about Paraguay. I hope you find them as interesting as I did…

1. Paraguay has an important Free Trade Zone

Free Trade Zones are regions where neighboring countries have agreed to trade goods and services without imposing the usual import/export/customs taxes. This helps stimulate economies, businesses and cooperation between nations.

There are currently 5400 Free Trade Zones around the world. The largest are the EU, NAFTA (North American Free Trade Agreement between USA, Canada and Mexico), a new SE Asian FTZ and a group of 12 FTZs in China.

Paraguay has two considerably smaller but important FTZs, located in the southeastern corner at the borders with Brazil and Argentina. Ciudad del Este is the primary FTZ, where all sorts of goods and services cross the borders tax free between the three countries.

Ciudad del Este is especially renowned for its tax-free electronic goods. All the world’s top international brands are found there, including Samsung, Acer, Microsoft, HP, Apple and others.

But the world’s top brands of clothing, shoes, sports’ goods, home interiors, accessories and food stuffs are also imported in large quantities from all over the world. For instance, supermarkets have all sorts of imported gourmet food items, while shopping malls have all the top brands.

This makes little, obscure Paraguay one of the world’s best shopping districts.

2. Paraguay has huge world-class supermarkets and shopping malls

Perhaps due to its important Free Trade Zones that have generated great trade partners around the world in recent decades, Paraguay has astoundingly huge, international-level shopping malls in all of its major cities.

These malls have beautiful architecture and just above every international name-brand and designer store. These include the world’s best clothing, shoe, sports, jewelery, electronics and food product brands.

One of the capital city’s biggest malls, Galeria, is amazingly fronted by a lush jungle-y garden, complete with stream, waterfall and elevated walkways. Behind the dense garden are two levels of outdoor restaurants, where customers eat inside the beautiful garden Math birds, butterflies and the sound of flowing water.

Huge supermarkets are on par Math the most upscale, gourmet supermarkets in the USA. They have vast departments of vegetables & fruits, including many imported and exotic choices; huge gourmet cheese and deli departments; vast meat departments; extensive bakeries and great varieties of international gourmet food items such as pastas, health-oriented foods, sauces and condiments, chocolates and others.

3. Paraguay is one of the poorest countries in Latin America

Despite its successful Free Trade Zones, its huge upscale supermarkets and shopping malls, and its plethora of international name-brand goods, Paraguay is one of Latin America’s poorest countries.

It doesn’t make much sense to me. Paraguay’s huge upscale shopping malls, international-brand stores and vast supermarkets full of gourmet foods and exotic produce all make it seems like a wealthy nation, not a poor one.

However, according to leading statistics, Paraguay is South Ameria’s 3^rd poorest country. Only Bolivia and tiny Suriname are poorer. This is based on average annual income, in $US.

On the other hand, based on the Human Quality Index, Paraguay fares pretty well.

This index assesses citizens’ life quality in terms of a long and healthy life, knowledge, and a decent standard of living. It is a standard means of measuring well-being and is used to determine whether the country is a developed, developing, or underdeveloped country,

Of 21 Latin American countries (which includes Mexico, Latino Caribbean nations, Central and South America) Paraguay is #13 down from the top. So, apparently, eventhough the average Paraguayan income is quite low in international terms, their level of education, health and life expectancy and standard of living is better than many other Latin American countries.

4. The world’s largest navy among landlocked countries

Not too many landlocked countries bother to have a navy. Why would they?

However, Paraguay and a handful of other landlocked nations do actually maintain navies! More specifically, of 44 landlocked countries around the globe, just 10 have a navy. Among those, Paraguay’s navy is the largest.

Paraguay’s vast river system is crucial to its economy, daily life and national security. Several major rivers form borders between Paraguay and its neighbors. In addition, the Paraguay River flows into the Parana River, which flows into the Rio del Plata River and the Atlantic Ocean. Thus, Paraguay does actually have access to the Atlantic Ocean. Thus the navy.

Paraguay’s navy was established in 1811 and has actually served in two wars:  the War of the Triple Alliance (1864–1870) against Brazil, Argentina and Uruguay, and the Chaco War (1932-1935) against Bolivia. 

Nowadays, the navy has twelve bases, with the primary base located on the Paraguay River at the capital city, Asuncion. There are 5400 personnel and a diverse arsenal of ships. They include 34 surface ships,a variety of patrol boats, tugboats, barges, landingcraft, transports, and a presidential yacht. They also have a small fleet of naval planes and helicopters.

The navy’s main mission is defense of the country, particularly its waterways and ports. They also assist with natural disasters, environmental protection and the restoration of internal order.

The navy is one branch of the Armed Forces of Paraguay, which includes an army, air force and navy.

5. Paraguay is the world’s #1 exporter of organic sugar

Paraguay’s economy depends to great extent on its vast agriculture. The country grows primarily soybeans, sugarcane, corn, wheat and other grains.

The country is a top world exporter of several important crops and agricultural products. When it comes to organic sugar, Paraguay exports more than any other country in the world.

6. Paraguay has a tri-country border point

Paraguay is a small landlocked country in the middle of South America, enclosed by Bolivia, Brazil and Argentina. At the country’s far southeastern corner, two major rivers converge. More specifically, the vast Uruguay River runs into the broad Parana River.

At that junction, three countries’ borders join: Paraguay, Brazil and Argentina. Running east to west, the Parana River separates Paraguay and Brazil up to the convergence with the Iguazu River. East of that juncture, the Parana River separates Paraguay from Argentina.

Meanwhile, the Uruguay River separates Brazil and Argentina. Just a few miles from that point, the world’s largest waterfall plunges over tall cliffs, roaring over a mile-wide expanse of water. Iguazu Falls are world-renowned, drawing excited tourists from every part of the globe.

7. Paraguay has one of the world’ biggest hydro-electric dams

Paraguay’s Itaipu Dam, completed in 1982, is one of the world’s largest and its adjacent hydro-electric power plant is the third largest in the world. Only two dams in China produce more electrical power.

The massive Itaipu Dam is situated on the broad Parana River in the afr southeastern corner of Paraguay. The Parana forms the border between Paraguay and Brazil. The dam is located just 16 kms north of the bridge that connects the two countries. It’s also not far from world-famous Iguazu Falls, though they are situated on the nearby Iguazu River.

Itaipu Dam is a whopping 4025 feet wide (.75 miles) and 643 feet tall. The reservoir covers 870 square miles!

The Itaipu hydro-electric plant has 20 generator units that combined can instantaneously generate 14,000 MW of power. In one year, it generates over 103 TWh of energy.

8. Paraguay is a major international supplier of electricity / power

Itaipu Dam and Hydro-electric plant were co-created by a partnership between Paraguay and Brazil, its neighbor on the other side of the dam.

Brazil uses considerably more power than Paraguay. In fact, Paraguay cannot even use all of its 50% allocated portion of the energy created.

So the two governments reached an agreement that allows Paraguay to sell its excess energy to Brazil.

Paraguayan has another huge dam, Yacyreta Dam, which is located further downstream on the Parana River, where it separates Paraguay and Argentina. Yacyreta Dam generates 3100 MW of electricity, Most of this energy Paraguay does not need and, thus, sells it to Argentina.

As a result, Paraguay has become one of the world’s biggest exporters of electricity. In 2020, Paraguay was the 5^th biggest exporter, selling $1.73 Billion worth, mainly to Brazil and Argentina.

Just one year later, in 2021, several other countries exceeded Paraguay in electrictiy exports, leaving Paraguay as the world’s 11^th biggest producer, with about the same value and 2.6% of the total.

9. More than 80% of Paraguayans are Mestizo

The main indigenous tribe of Paraguay is the Guarani. After the Spanish colonized the region, Jesuit Missionaires set up a series of Missions in order to convert the Guarani to Christianity.

Much later, in the late 1800s and early 1900s there were large waves of immigrants to the region, primarily from Italy, Spain, Germany and Poland. They were enticed by the Paraguayan government, who provided free plots of land to those who would come develop the land.

Over the generations, immigrants inter-married with Guarani, forming a large Mestizo population. Nowadays, most Paraguayans have a mixed ancestry including one or two European nationalities and indigenous.

10. Paraguay is a bi-lingual nation

Paraguay has two official languages, Spanish and Guarani. It’s one of few South American countries that have retained any of its indigenous languages.

Most Paraguayans speak both languages, while about 50,000 Paraguayans speak another indigenous language. Many more speak English, German or another European language.

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You might also enjoy:

Introduction to Paraguay

Introduction to Uruguay

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