Encarnación, Paraguay Encarnación, Paraguay Encarnación () is a district and the capital city of Itapúa Department in Paraguay, located at the south-east of the department, on the right-hand (western) shore of the Paraná River, opposite Posadas, Argentina. The city has an area of 274 km² and a population of 93,497 (2002 Census). Encarnación is the third-largest city of Paraguay. Encarnación is connected to the Argentine city of Posadas by the San Roque González de Santa Cruz Bridge and the International Train. The city is located on Route 1, some 370 km (225 miles) from Asunción, and located on Route 6, some 280
Economy of Paraguay Foreign investment in Paraguay nearly disappeared in 2002. After direct foreign investment of US$84 million in 2001, only US$9 million in investment came from abroad in 2002. This drop was largely the result of the financial crisis in Argentina and the banking collapse in Paraguay. Direct foreign investment rebounded in 2003, reaching US$90.8 million for the year. Paraguay has depended on the International Monetary Fund (IMF) and World Bank for economic development assistance. The World Bank has promised Paraguay assistance totaling US$325 million between 2003 and 2007. Projects currently underway in Paraguay aim to improve education, transportation, and rural development.