AIA, LORCS, OAS, OPANAL, PCA, RG, UN, UNCTAD, UNESCO, UNIDO, UPU, WCL,
WHO, WIPO, WMO

_#_Diplomatic representation: Ambassador Marcos MARTINEZ MENDIETA;
Chancery at 2400 Massachusetts Avenue NW, Washington DC 20008; telephone
(202) 483-6960 through 6962; there are Paraguayan Consulates General in
New Orleans and New York, and a Consulate in Houston;

US--Ambassador Jon GLASSMAN; Embassy at 1776 Avenida Mariscal
Lopez, Asuncion (mailing address is C. P. 402, Asuncion, or APO Miami
34036-0001); telephone [595] (21) 213-715

_#_Flag: three equal, horizontal bands of red (top), white, and blue
with an emblem centered in the white band; unusual flag in that the
emblem is different on each side; the obverse (hoist side at the left)
bears the national coat of arms (a yellow five-pointed star within a
green wreath capped by the words REPUBLICA DEL PARAGUAY, all within
two circles); the reverse (hoist side at the right) bears the seal of the
treasury (a yellow lion below a red Cap of Liberty and the words Paz y
Justicia (Peace and Justice) capped by the words REPUBLICA DEL
PARAGUAY, all within two circles)

_*_Economy
_#_Overview: The economy is predominantly agricultural. Agriculture,
including forestry, accounts for about 25% of GNP, employs about 45% of
the labor force, and provides the bulk of exports. Paraguay has no known
significant mineral or petroleum resources but does have a large
hydropower potential. Since 1981 economic performance has declined
compared with the boom period of 1976-81, when real GDP grew at an
average annual rate of nearly 11%. During 1982-86 real GDP fell in three
of five years, inflation jumped to an annual rate of 32%, and
foreign debt rose. Factors responsible for the erratic behavior of the
economy were the completion of the Itaipu hydroelectric dam, bad weather
for crops, and weak international commodity prices for agricultural
exports. In 1987 the economy experienced a minor recovery because of
improved weather conditions and stronger international prices for key
agricultural exports. The recovery continued through 1990, on the
strength of bumper crops in 1988-89. The government, however, must
follow through on promises of reforms needed to deal with escalating
inflation, large fiscal deficits, growing debt arrearages, and falling
reserves.

_#_GDP: $4.6 billion, per capita $1,000; real growth rate 3.5%
(1990 est.)

_#_Inflation rate (consumer prices): 44% (1990 est.)