Location: Central South America, northeast of Argentina, also bordered by Bolivia and Brazil.
Land Area: 406,750 sq. km (157,046 sq. miles)
Coastline: 0 km (landlocked)
Highest Point: Cerro Pero 842 m (2,762 feet)
Lowest Point: Junction of Paraguay and Parana Rivers 46 m (151 feet)
Notable Landmarks: Take a peek...

Paraguay has a market economy marked by a large informal sector. The informal sector features both re-export of imported consumer goods to neighboring countries, as well as the activities of thousands of very small businesses 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 three percent annually in 1995-97; but the Gross domestic Product declined slightly in 1998, 1999, and 2000, rose slightly in 2001, only to fall again in 2002. On a per capita basis, real income has leveled off at 1980 levels. Most observers attribute Paraguay's poor economic performance to political uncertainty, corruption, lack of progress on structural reform, and substantial internal and external debt.

Gross Domestic Product (GDP): $28.17 billion (2003 est.)
GDP Per Capita: $4,700 (2003 est.)
Number of Workers: 2.15 million (2003 est.)
Unemployment Rate: 18.5 percent (2003 est.)
Industries: sugar, cement, textiles, wood products, beverages, steel, metallurgic, electric power.
Currency: Guaraní What does it look like?

Type of Government: Constiutional Republic
Head of State: President Nicor Duarte Frutos (since 15 August 2003)
Head of Government: President Nicor Duarte Frutos (since 15 August 2003)
Capital City: Asuncion
Legal Age to Vote: 18 years of age; universal and compulsory for persons up to age 75.
Flag Design: 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 --- with the hoist side at the left, the flag bears the national coat of arms (a yellow five-pointed star with a green wreath all within two circles). With the hoist side at the right, the flag shows the seal of the treasury (a yellow lion below a red Cap of Liberty all within two circles). The words "Republica del Paraguay" are shown on both sides.
Official Language: Spanish (official), Guaraní (official)
Religions: Roman Catholic, 90 percent; Mennonite and other Protestant.

Indians populated the land of Paraguay until the Spaniards conquered it in the 1500s. Eventually, the two populations blended well. Ruled by dictators for most of its history, the country suffered from two devastating wars --- the War of the Triple Alliance (1865-70) and the Chaco War of 1932-35. As a result of the first war, Paraguay lost two-thirds of all adult males over 12 and much of its territory. In the Chaco War of 1932-35, large, economically important areas were won from Bolivia. Even so, Paraguay stagnated economically for the next half century. 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.