Background: In the disastrous War of the Triple Alliance (1865-70) Paraguay lost two-thirds of all adult males and much of its territory. It stagnated economically for the next half century. In the Chaco War of 1932-35 large economically important areas were won from Bolivia. The 35-year military dictatorship of Alfredo STROESSNER was overthrown in 1989 and despite a marked increase in political infighting in recent years relatively free and regular presidential elections have been held since then.

Geographic coordinates: 23 00 S 58 00 W

Map reference: South America

Area
Total: 406,750 km²
Land: 397,300 km²
Water: 9,450 km²
Comparative: slightly smaller than California

Land boundaries
Total: 3,920 km
Border countries: (3) Argentina 1,880 km; , Bolivia 750 km; , Brazil 1,290 km

Coastline: 0 km (landlocked)

Maritime claims: none (landlocked)

Climate: subtropical to temperate; substantial rainfall in the eastern portions becoming semiarid in the far west

Terrain: grassy plains and wooded hills east of Rio Paraguay; Gran Chaco region west of Rio Paraguay mostly low marshy plain near the river and dry forest and thorny scrub elsewhere

Elevation
Extremes lowest point: junction of Rio Paraguay and Rio Parana 46 m
Extremes highest point: Cerro Pero (Cerro Tres Kandu) 842 m

Natural resources: hydropower timber iron ore manganese limestone

Land use
Arable land: 7.47%
Permanent crops: 0.24%
Other: 92.29% (2005)

Irrigated land: 670 km² (2003)

Natural hazards: local flooding in southeast (early September to June); poorly drained plains may become boggy (early October to June)

Geography
Note: landlocked; lies between Argentina Bolivia and Brazil; population concentrated in southern part of country

Population: 6,506,464 (July 2006 est.)
Growth rate: 2.45% (2006 est.)
Below poverty line: 32% (2005 est.)

Nationality
Noun: Paraguayan
Adjective: Paraguayan

Ethnic groups: mestizo (mixed Spanish and Amerindian) 95% other 5%

Languages: Spanish (official) Guarani (official)

Religions: Roman Catholic 90% Mennonite and other Protestant 10%

Age structure
0-14 years: 37.7% (male 1,245,149/female 1,204,970)
15-64 years: 57.5% (male 1,878,761/female 1,862,266)
65 years and over: 4.8% (male 145,899/female 169,419) (2006 est.)

Median age
Total: 21.3 years
Male: 21.1 years
Female: 21.6 years (2006 est.)

Population growth rate: 2.45% (2006 est.)

Birth rate: 29.1 births/1000 population (2006 est.)

Death rate: 4.49 deaths/1000 population (2006 est.)

Net migration rate: -0.08 migrant(s)/1000 population (2006 est.)

Environment
Current issues: deforestation; water pollution; inadequate means for waste disposal pose health risks for many urban residents; loss of wetlands
International agreements party to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Ozone Layer Protection, Wetlands
International agreements signed but not ratified: none of the selected agreements

Sex ratio
At birth: 1.05 male/female
Under 15 years: 1.03 male/female
15-64 years: 1.01 male/female
65 years and over: 0.86 male/female
Total population: 1.01 male/female (2006 est.)

Infant mortality rate
Total: 24.78 deaths/1000 live births
Male: 29.4 deaths/1000 live births
Female: 19.92 deaths/1000 live births (2006 est.)

Life expectancy at birth
Total population: 75.1 years
Male: 72.56 years
Female: 77.78 years (2006 est.)

Total fertility rate: 3.89 children born/woman (2006 est.)

Hivaids
Adult prevalence rate: 0.5% (2003 est.)
People living with hivaids: 15,000 (1999 est.)
Deaths: 600 (2003 est.)

Literacy
Definition: age 15 and over can read and write
Total population: 94%
Male: 94.9%
Female: 93% (2003 est.)

Country name
Conventional long form: Republic of Paraguay
Conventional short form: Paraguay
Local long form: Republica del Paraguay
Local short form: Paraguay

Government type: constitutional republic

Capital
Name: Asuncion
Geographic coordinates: 25 16 S, 57 40 W
Time difference: UTC-4 (1 hour ahead of Washington, DC during Standard Time)

Administrative divisions: 17 departments (departamentos singular - departamento) and 1 capital city*; Alto Paraguay Alto Parana Amambay Asuncion* Boqueron Caaguazu Caazapa Canindeyu Central Concepcion Cordillera Guaira Itapua Misiones Neembucu Paraguari Presidente Hayes San Pedro

Independence: 14 May 1811 (from Spain)

National holiday: Independence Day 14 May 1811 (observed 15 May annually)

Constitution: promulgated 20 June 1992

Legal system: based on Argentine codes Roman law and French codes; judicial review of legislative acts in Supreme Court of Justice; accepts compulsory ICJ jurisdiction

Suffrage: 18 years of age; universal and compulsory up to age 75

Executive branch
Chief of state: President Nicanor DUARTE FRUTOS (since 15 August 2003); Vice President Luis CASTIGLIONI Joria (since 15 August 2003); note - the president is both the chief of state and head of government
Head of government: President Nicanor DUARTE FRUTOS (since 15 August 2003); Vice President Luis CASTIGLIONI Joria (since 15 August 2003)
Cabinet: Council of Ministers nominated by the president
Elections: president and vice president elected on the same ticket by popular vote for a single five-year term; election last held 27 April 2003 (next to be held April 2008)
Election results: Nicanor DUARTE FRUTOS elected president; percent of vote - Nicanor DUARTE FRUTOS 37.1%, Julio Cesar Ramon FRANCO Gomez 23.9%, Pedro Nicolas Maraa FADUL Niella 21.3%, Guillermo SANCHEZ Guffanti 13.5%, other 4.2%

Legislative branch
Elections: Chamber of Senators - last held 27 April 2003 (next to be held April 2008); Chamber of Deputies - last held 27 April 2003 (next to be held April 2008)
Election results: Chamber of Senators - percent of vote by party - NA; seats by party - ANR 16, PLRA 12, UNACE 7, PQ 7, PPS 2, PEN 1; Chamber of Deputies - percent of vote by party - NA%; seats by party - ANR 37, PLRA 21, UNACE 10, PQ 10, PPS 2
Note: as of January 2006, changes in party affiliation has led to the composition of the legislature as follows: Chamber of Senators - seats by party - ANR 18, PLRA 12, UNACE 5, PQ 7, PPS 2, PEN 1; Chamber of Deputies - seats by party - ANR 39, PLRA 21, UNACE 8, PQ 10, PPS 2

Judicial branch: Supreme Court of Justice or Corte Suprema de Justicia (judges appointed on the proposal of the Council of Magistrates or Consejo de la Magistratura)

Political parties and leaders
Note: Nicanor DUARTE FRUTOS on leave as party leader of the Colorado Party or ANR while serving as President of Paraguay; Lino Cesar OVIEDO Silva, leader of UNACE, is currently serving a ten-year prison term

International organization participation: CAN (associate) CSN FAO G-77 IADB IAEA IBRD ICAO ICCt ICFTU ICRM IDA IFAD IFC IFRCS ILO IMF IMO Interpol IOC IOM IPU ISO (correspondent) ITU LAES LAIA Mercosur MIGA MINUSTAH MONUC NAM (observer) OAS OPANAL OPCW PCA RG UN UNCTAD UNESCO UNIDO UNMEE UNMIL UNMIS UNOCI UPU WCL WCO WHO WIPO WMO WToO WTO

Diplomatic representation
In the us chief of mission: Ambassador James SPALDING Hellmers
In the us chancery: 2,400 Massachusetts Avenue NW, Washington, DC 20,008
In the us telephone: [1] (202) 483-6,960 through 6,962
In the us fax: [1] (202) 234-4,508
In the us consulates general: Kansas City, Los Angeles, Miami, New York
From the us embassy: 1776 Avenida Mariscal Lopez, Casilla Postal 402, Asuncion
From the us mailing address: Unit 4,711, APO AA 34,036-0001
From the us telephone: [595] (21) 213-715
From the us fax: [595] (21) 213-728

Flag description: three equal horizontal bands of red (top) white and blue with an emblem centered in the white band; unusual flag in that the emblem is different on each side; the obverse (hoist side at the left) bears the national coat of arms (a yellow five-pointed star within a green wreath capped by the words REPUBLICA DEL PARAGUAY all within two circles); the reverse (hoist side at the right) bears the seal of the treasury (a yellow lion below a red Cap of Liberty and the words Paz y Justicia (Peace and Justice) capped by the words REPUBLICA DEL PARAGUAY all within two circles)

Economy 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 derives its living from agricultural activity often on a subsistence basis. The formal economy grew by an average of about 3% annually in 1995-97 but averaged near-zero growth in 1998-2001 and contracted by 2.3 percent in 2002 in response to regional contagion and an outbreak of hoof-and-mouth disease. On a per capita basis real income has stagnated at 1980 levels. Most observers attribute Paraguay's poor economic performance to political uncertainty corruption lack of progress on structural reform substantial internal and external debt and deficient infrastructure. Aided by a firmer exchange rate and perhaps a greater confidence in the economic policy of the DUARTE FRUTOS administration the economy rebounded between 2003 and 2005 posting modest growth each year.

Real gdp purchasing power parity: $29.11 billion (2005 est.)

Real gdp growth rate: 2.7% (2005 est.)

Real gdp per capita: $4,600 (2005 est.)

Gdp composition by sector of origin
Agriculture: 22.4%
Industry: 20.7%
Services: 56.9% (2005 est.)

Agriculture products: cotton sugarcane soybeans corn wheat tobacco cassava (tapioca) fruits vegetables; beef pork eggs milk; timber

Industries: sugar cement textiles beverages wood products steel metallurgic electric power

Industrial production growth rate: 0% (2000 est.)

Labor force: 2.68 million (2005 est.)
By occupation agriculture: 45%
By occupation industry: NA%
By occupation services: NA%

Unemployment rate: 16% (2005 est.)

Population below poverty line: 32% (2005 est.)

Household income or consumption by percentage share
Lowest 10: 0.5%
Highest 10: 43.8% (1998)

Distribution of family income gini index: 56.8 (1999)

Budget
Revenues: $1.334 billion
Expenditures: $1.37 billion; including capital expenditures of $700 million (2005 est.)

Public debt: 36% of GDP (2005 est.)

Fiscal year: calendar year

Inflation rate consumer prices: 6.8% (2005 est.)

Current account balance: $-255 million (2005 est.)

Exports: $3.13 billion f.o.b. (2005 est.)
Commodities: soybeans feed cotton meat edible oils electricity wood leather
Partners: Uruguay 26.7% Brazil 15.2% Argentina 4.8% Chile 4.7% (2005)

Imports: $3.832 billion f.o.b. (2005 est.)
Commodities: road vehicles consumer goods tobacco petroleum products electrical machinery
Partners: Brazil 26.8% Argentina 21.1% US 20.8% China 9.5% (2005)

Reserves of foreign exchange and gold: $1.297 billion (2005 est.)

Debt external: $3.45 billion (2005 est.)

Exchange rates: guarani per US dollar - 6,178 (2005) 5,975 (2004) 6,424 (2003) 5,716 (2002) 4,106 (2001)

Electricity
Production: 51.29 billion kWh (2003)
Consumption: 3.528 billion kWh (2003)
Exports: 44.17 billion kWh (2003)
Imports: 0 kWh (2003)

Natural gas
Production: 0 m³ (2003 est.)
Consumption: 0 m³ (2003 est.)

Telephones
Main lines in use: 320,300 (2005)
Mobile cellular: 1.887 million (2005)

Telephone system
General assessment: meager telephone service; principal switching center is in Asuncion
Domestic: fair microwave radio relay network
International: country code - 595; satellite earth station - 1 Intelsat (Atlantic Ocean)

Internet
Country code: .py
Hosts: 13,178 (2006)
Users: 200,000 (2005)

Military expenditures
Percent of gdp: 0.9% (2003 est.)

Military service age and obligation: 18 years of age for compulsory and voluntary military service; conscript service obligation - 12 months for Army 24 months for Navy (2004)

Airports: 881 (2006)
With paved runways total: 12
With paved runways over 3047 m: 3
With paved runways 15-24 to 2437 m: 5
With paved runways 914 to 1523 m: 4 (2006)
With unpaved runways total: 869
With unpaved runways 15-24 to 2437 m: 26
With unpaved runways 914 to 1523 m: 325
With unpaved runways under 914 m: 518 (2006)

Railways
Total: 36 km
Standard gauge: 36 km 1.435-m gauge (2005)

Roadways
Total: 29,500 km
Paved: 14,986 km
Unpaved: 14,514 km (1999)

Waterways: 3,100 km (2005)

Merchant marine
Total: 21 ships (1000 GRT or over) 34,749 GRT/39,280 DWT
By type: cargo 15, livestock carrier 1, passenger 1, passenger/cargo 1, petroleum tanker 2, roll on/roll off 1
Foreign owned: 3 (Argentina 3)
Registered in other countries: 1 (Ecuador 1) (2006)

Ports and terminals: Asuncion Villeta San Antonio Encarnacion

Disputes international: 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

Illicit drugs: major illicit producer of cannabis most or all of which is consumed in Brazil Argentina and Chile; transshipment country for Andean cocaine headed for Brazil other Southern Cone markets and Europe; corruption and some money-laundering activity especially in the Tri-Border Area; weak anti-money-laundering laws and enforcement