NationsData

Investing in Paraguay in 2026

Latin America & Caribbean

40

Score

CautionNR

Caution Investment Destination

Significant risks present - experienced investors with hedging strategies

Why investors choose Paraguay

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.

Quick facts about Paraguay
Investment Score40/100
Risk LevelCaution
Credit RatingNR
GDP$44.5B
GDP Growth4.0%
GDP per Capita$6,100
Inflation4.0%
Population7.4M
FDI Inflows1.2% GDP
Trade Openness62%
Government Debt36% GDP
Current Account-0.5% GDP
Score breakdown
Economic Health (30%)38
Political Safety (25%)35
Business Climate (20%)42
Financial Strength (15%)36
Growth Potential (10%)52
Investment Profile
Sector Scores
Score History

How Paraguay's investment score has evolved over time

2021: 38/100+2 pts since 20212025: 40/100
Top sectors for investment in Paraguay

Agriculture

18% of GDP, stable

55

Hydroelectric Energy

8% of GDP, stable

48

Livestock

6% of GDP, stable

42

Manufacturing

10% of GDP, growing

38
Governance & rule of law in Paraguay

World Bank Governance Indicators (-2.5 to +2.5, higher is better)

Political Stability-0.1
Rule of Law-0.6
Corruption Control-0.7
Regulatory Quality-0.2

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Frequently asked questions about investing in Paraguay
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.

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