Governorate of Paraguay Governorate of Paraguay The Governorate of Paraguay (), originally called the Governorate of Guayrá, was a governorate of the Spanish Empire and part of the Viceroyalty of Peru. Its seat was the city of Asunción; its territory roughly encompassed the modern day country of Paraguay. The Governorate was created in December 16, 1617 by the royal decree of King Philip III as a split of the Governorate of the Río de la Plata and of Paraguay into its respective halves. The Governorate lasted until 1782, after which the massive Viceroyalty of Peru was split, and Paraguay became an intendency ("intendencia")
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