In a recent report released by the Getúlio Vargas Foundation (FGV), a Brazilian higher education institution and think tank, Paraguay has once again emerged as the best environment for economic investments in Latin America.
The Latin American Economic Climate Index (ICE) unveiled by FGV indicates that the first quarter of 2024 witnessed the best business climate in the region over the past 11 years.
According to the findings of a survey, Paraguay secured the top spot in the index with an impressive score of 154.6 points. This was followed by Uruguay with 139.4 points and Brazil with 114.6 points.
Despite strides in improving their indicators, countries such as Peru, Colombia, Chile, and Ecuador remain in the unfavorable zone, recording scores below 100 points as per the report for the first quarter of the year.
Furthermore, the report sheds light on the current economic situation, with Paraguay once again leading the pack with a remarkable score of 166.7 points in the overall ranking, as stated by the Getulio Vargas Foundation.
The report also highlights upward revisions in GDP growth projections for 2024 in three countries of the region: Uruguay, Chile, and Peru.
Interestingly, Paraguay stands out for projecting the highest growth rate for the year, with a projected expansion of 3.9%. This is followed by Uruguay (3.2%) and Mexico (2.8%), according to the forecasts.
The overall positive momentum across the region in the first quarter can be attributed largely to Brazil’s favorable assessment. Brazil, being the largest economy in the region, saw its indicator climb from 100 points in the final quarter of 2023 to 114.6 in the first quarter of 2024, according to the report.
While the region as a whole experienced an upturn in the business climate, Mexico and Chile witnessed significant declines in their indicators, according to the data.
These findings underscore Paraguay’s growing appeal as an investment destination in Latin America, signaling promising economic prospects for the country.
