Smelter Boosts Economic Outlook

BMI View: Rio Tinto Alcan 's plan to build an aluminium smelter in Paraguay could provide a major fillip to the country's medium-term economic outlook, helping the economy to divert away from its overreliance on agricultural exports and bolstering the government's tax intake. However, we caution that the state electricity company will need to guarantee supplies to the site if the economy is to feel the full benefit of the project.

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