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Carlos Carvallo, a board member of the Central Bank of Paraguay (BCP), told ABC Cardinal yesterday that the political context is a factor that necessarily influences the mood of investors, not only in Paraguay, but in all economies of the world. "The political factor weighs heavily, the game of interests and all these kinds of issues end up having a positive or negative impact on the economy at a given moment," said Carvallo during the consultation.
A Cepal's recent report mentions that the net flow of foreign direct investment (FDI) in 2017 to Paraguay amounted to 356 million US dollars, an increase of 11.1% over 2016. [19659003] This increase, according to the BCP member, is due in large part to macro stability, which in his view is a fundamental factor when investors choose where to deposit the capital.
He also noted that the balance of the FDI in 2003 was close to 950 million US dollars, a figure that then reached 5 billion US dollars by the end of 2017.
Carvallo said that in addition to the increase in L & 39 FDI, macroeconomic stability has brought us many these benefits, especially at a time when the countries of the region were going through a rather turbulent economic situation.
However, he acknowledged that, although this condition is necessary, it is not enough, and we must continue to emphasize other elements that are also fundamental when it occurs. is to attract investment, for example, a more comprehensive development plan in the country, which includes infrastructure, health, education and institutions in general. In addition, he added that Justice's performance is the key to executing contracts in a security framework.
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