Paraguay River 98% of the country's inhabitants. As such the river is considered perhaps the key geographical feature of the country with which it shares its name. Some after flowing through the middle of Paraguay, at the confluence with the Pilcomayo River and passing the Paraguayan capital city, Asunción, the river forms the border with Argentina, flowing generally south-southwesterly for another before it reaches its end, joining with the Paraná River. The Paraguay River is the second major river of the Rio de la Plata Basin, after the Paraná River. The Paraguay's drainage basin, about , covers a vast area that includes
Economy of Paraguay Economy of Paraguay Paraguay has a market economy highly dependent on agriculture products. In recent years, the economy has grown as a result of increased agricultural exports, especially soybeans. Paraguay has the economic advantages of a young population and vast hydroelectric power but has few mineral resources, and political instability has undercut some of the economic advantages present. The government welcomes foreign investment. Paraguay is a middle-income country that changed rapidly in the 1970s and 1980s as a result of hydroelectric development, agricultural colonization, construction, and cash crop exports. Nevertheless, the country's gross domestic product (GDP) in 1986 was approximately