Asunción
Economy

The economic development of the country is reflected in the city by how in recent years construction (infrastructure) has grown rapidly due to the great demand for foreign investment. In addition, Asunción ranks sixth as the most profitable city in Latin America. The most important companies, businesses, and investment groups have their headquarters in Asunción. Commerce has expanded considerably in recent years stretching towards the suburbs where shopping malls and supermarkets have been built. Paraguay's only stock exchange, the BVPASA, is located here. The city is the economic center of Paraguay, followed by Ciudad del Este and Encarnación.

The attractiveness of the city has been attributed to its easygoing tax policies. Asunción has unrestrained taxes on the investments and movements of capital. There is also no income tax for investors in Bonds of Asunción Stock Exchange. Incentives like these attract significant foreign investment into the city. According to experts, Paraguay is tapped as one of the top three countries with the best investment climate in Latin America and the Caribbean. As well it remains the most attractive nation in the hemisphere in doing business and is equipped with a series of legislations that protect strategic investments and guarantee a friendly environment for the development of large industrial plants and infrastructure projects.

The distribution of the economically active population varies according to the economic sectors. Actually indicates that the population fundamentally participates in the tertiary sector (commerce and services), employing 8 out of every 10 individuals. The secondary sector (industry and construction) concentrates 16% of the economically active, while participation in the primary sector (agriculture and livestock) is practically zero since Asunción is a strictly urban area. Regarding commerce, it should be pointed out that this sector has developed considerably in recent years, moving from the old town to residential neighborhoods, where shopping malls, shopping centers, and commercial promenades are spread. This trend is still increasing.

Important international banks have their headquarters in the capital, among them are Citibank, Itau Bank, GNB, BBVA, etc. Among the Paraguayan capital banks, there are the National Development Bank, the Family Bank, the Amambay Bank, the Regional Bank, the Visión Banco, etc.

At the same time, the Central Bank of Paraguay has its headquarters in this city. Its mission is to preserve and ensure the stability and value of the currency, promote the effectiveness and stability of the financial system, and fulfill its role as a bank of banks and financial agent of the State. To this end, it has various powers in monetary, financial, credit, and international exchange matters.

According to the 2022 Cost of Living ranking prepared by ECA International, the price of products and services in about 200 cities around the world was compared. The study revealed that Asunción is the third cheapest city in Latin America for a foreigner.
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