Paraguay Río de la Plata to the Paraná River, and finally up the Paraguay River. In 1537, they established the city of Asunción, which was the first capital of the Governorate of Paraguay and Río de la Plata. Paraguay was the epicenter of the Jesuit Missions, where the Guaraní people were educated and introduced to Christianity and European culture under the direction of the Society of Jesus in Jesuit reductions, mainly during the 17th century. However, after the expulsion of the Jesuits from Spanish territories in 1767, Paraguay increasingly became a peripheral colony, with few urban centers and settlers. Following independence
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