Paraguay continues to be one of the fastest growing economies in Latin America, although the country still faces considerable political and social challenges. With rapid and dramatic changes in the country’s two largest neighbors, Brazil and Argentina, regional trends have an especially important impact on Paraguay’s economy and the reform agenda of President Horacio Cartes, a former businessman. In issues ranging from the outlook for Mercosur to energy integration in the Southern Cone, regional dynamics will shape Paraguay’s economic future—and vice versa. 

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