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 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