Investing in Paraguay in 2026
Latin America & Caribbean
40
Score
Caution Investment Destination
Significant risks present - experienced investors with hedging strategies
Paraguay earns an investment score of 40/100, placing it in the caution category for global investors. Significant risks present - experienced investors with hedging strategies. The country's standout dimensions are growth potential (52/100) and business climate (42/100), with overall GDP of $44.5B and per-capita output of $6,100. Growth is running at 4.0% with 1.2% of GDP arriving as foreign direct investment. Inflation is contained at 4.0%. The sovereign holds a NR credit rating, generally considered speculative-grade with elevated default risk. Investment opportunities cluster around Agriculture (sector score 55/100, currently stable), which represents 18% of GDP. Trade openness sits at 62% of GDP, a useful proxy for how integrated Paraguay is with the global economy.
How Paraguay's investment score has evolved over time
Agriculture
18% of GDP, stable
Hydroelectric Energy
8% of GDP, stable
Livestock
6% of GDP, stable
Manufacturing
10% of GDP, growing
World Bank Governance Indicators (-2.5 to +2.5, higher is better)
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Is Paraguay a safe country to invest in?
Paraguay carries a caution risk rating with an overall investment score of 40/100. Significant risks present - experienced investors with hedging strategies. Sub-scores: economic health 38/100, political stability 35/100, business climate 42/100, financial strength 36/100, growth potential 52/100.
What is Paraguay's sovereign credit rating?
Paraguay holds a credit rating of NR, reflecting its ability to meet sovereign debt obligations. Credit ratings are a key signal of macro-financial health and a prerequisite many institutional investors require before allocating capital.
What are the strongest sectors for investment in Paraguay?
The top investment sectors in Paraguay are Agriculture, Hydroelectric Energy, Livestock. Agriculture leads with a sector score of 55/100 and represents 18% of GDP. Its current trend is stable.
What is Paraguay's GDP growth rate?
Paraguay's most recent GDP growth was 4.0%, with total GDP of $44.5B and GDP per capita of $6,100. Inflation is running at 4.0% and the current account balance is -0.5% of GDP.
How does Paraguay score on governance and rule of law?
On the World Bank Governance Indicators (scale -2.5 to +2.5, higher is better), Paraguay scores: political stability -0.1, rule of law -0.6, corruption control -0.7, and regulatory quality -0.2.
Can foreigners invest in Paraguay?
Most industries in Paraguay are open to foreign direct investment, though specific sectors may require a local partner, government approval, or special licensing. Consult a qualified local advisor for restrictions that apply to your sector.
What is foreign direct investment (FDI) like in Paraguay?
Foreign Direct Investment in Paraguay runs at 1.2% of GDP, while the trade openness ratio (exports + imports as a share of GDP) stands at 62%. These figures show how integrated Paraguay is with the global economy and how welcoming it has been to international capital.
What is the public debt level in Paraguay?
Paraguay's government debt stands at 36% of GDP. This is a relatively conservative debt load, supporting fiscal flexibility.