The country’s GDP grew 3.6% in 2025, placing it among the strongest economies in the region. In this regard, the World Bank (WB) updated its global economic projections and placed Paraguay as the second-fastest-growing economy in the year, behind Argentina. Consequently, income levels rose and living standards improved, resulting in further expansion of the middle class and a further erosion of poverty. These positive economic indicators boosted purchasing power and an expansion of middle and up

The country’s GDP grew 3.6% in 2025, placing Paraguay among the strongest economies in the region. In this regard, the World Bank (WB) updated its global economic projections and placed Paraguay as the second-fastest-growing economy in the year, behind Argentina. Consequently, income levels rose and living standards improved once more, resulting in further expansion of the middle class and a further erosion of poverty. Meanwhile, soft drinks sales experienced moderate growth during 2025. In addi

Economic freedom has improved markedly and state finances are solid, but corruption remains endemic. The economy is set to outpace peers and will be supported by a strong investment pipeline, but exposure to commodities creates risks for the external sector. Poverty greatly afflicts indigenous peoples and the rural populace is relatively large, but Paraguay is ageing more slowly than counterparts. Data centres hold great potential and 5G has been launched, but innovation could be enhanced.

Overall, sales of staple foods witnessed a positive performance in 2025, mainly triggered by economic strength and the continued decline in smuggling activity from Argentina, which started in 2024. In fact, all categories envisaged an increase in sales in 2025. Paraguay’s GDP climbed by almost 4% year on year in the period. At the same time, the country’s inflation decelerated for the third consecutive year and posted the lowest record since 2020. Consequently, people’s disposable income increas

Overall, retail value sales of cooking ingredients and meals are expected to rise in 2025, mainly triggered by economic strength and the ongoing reduction in smuggling activity from Argentina, which started in 2024. Paraguay’s GDP is set to rise by 4% in 2025, while inflation in the country decelerated for the third consecutive year and posted the lowest record since 2020. Consequently, disposable incomes have increased. In fact, all categories – except dried ready meals – are expected to see an

The country’s GDP is expected to climb 3.6% in 2025, placing it among the strongest economies in the region. In this regard, the World Bank (WB) updated its global economic projections with Paraguay now expected to be placed as the second fastest growing economy in 2025, behind Argentina. Consequently, income levels will rise and living standards will improve once more, resulting in further expansion of the middle class and a further erosion of poverty.

The country’s GDP is expected to climb 3.6% in 2025, placing it among the strongest economies in the region. In this regard, the World Bank (WB) updated its global economic projections and placed Paraguay as the second-fastest-growing economy in 2025, behind Argentina. Consequently, income levels will rise and living standards will improve once more, resulting in the further expansion of the middle class and a further erosion of poverty.

The report examines the economic landscape of Paraguay and provides information on major monetary indicators, foreign trade and government finance. The economy expanded in real terms in 2024, driven by private consumption, government spending, investments. However, global economic slowdown, increasing geopolitical tensions and economic fragmentation as well as tight financial conditions pose risks to the country’s economic outlook.

This report assesses the business environment in Paraguay, focusing on the regulatory environment, stability of the financial system, FDI intake, labour market flexibility and skillset, trade openness, mobility infrastructure, ICT adoption and innovative capabilities. Companies can evaluate these factors to understand the strengths and weaknesses of a country’s business environment for better strategic investment decisions.

The country’s GDP is expected to climb 3.6% in 2025, placing the country among the strongest economies in the region. In this regard, the World Bank (WB) updated its global economic projections and placed Paraguay as the second fastest-growing economy in 2025, behind Argentina. Consequently, income levels are rising and living standards are improving once more, resulting in further expansion of the middle class and a further erosion of poverty.

Insight into income, wealth and expenditure of consumers and households is vital in helping businesses make strategic decisions with regards to which country (or even which region within a country) to enter, which consumer segment to target, which products or services to market, and at which price point. Other factors such as the size and expansion of the middle class and income inequality are also important in helping companies gauge the potential of a country market.

The economy in Paraguay in 2024 performed better than it did in the previous year, seeing stable inflation, which is enabling Paraguay to emerge as one of the best performing countries in Latin America. Following the Paraguayan Central Bank estimation for 2024, GDP grew 4.1%, while inflation for the end of the year reached 3.8%, remaining relatively stable from 3.7% recorded in 2023.

The economy in Paraguay in 2024 was even better than it was in 2023. With stable inflation, Paraguay is emerging as one of the best performing countries in Latin America. Following the Paraguayan central bank estimation for 2024, GDP grew 4.1%, while inflation reached 3.8%, remaining relatively stable since the 3.7% recorded in 2023. Annual growth was driven by strong investment and robust household consumption, a result of government efforts to increase disposable income.

The number of households is set to increase moderately, while the average household size will shrink in Paraguay over 2024-2029. Couples with children will remain the dominant household type but the fastest household expenditure growth is forecast to be recorded by extended ("other") households. In addition, the share of households living in urban areas is projected to expand to 65.6% by 2029.

The beauty and personal care industry in Paraguay experienced significant growth in 2024, with double-digit increases in value sales. This growth can be attributed to several factors. One major factor is the return of many Paraguayan consumers to the formal market. This shift occurred after the purchase of contraband products from Argentina decreased, largely due to an exchange rate adjustment in Argentina that narrowed the price gap between the two countries. As a result, it became less profita

The population of Paraguay is predicted to Increase by 16.7%, due to changes in net migration and natural change, standing at a total of 8.1 million citizens by 2040. Demographic changes, economic conditions and social trends are all contributing to negative net migration. The birth rate in Paraguay is anticipated to fall between 2024 and 2040. Middle Youth (aged 30-44) will represent the largest portion of the population by 2040.

Overall, the tissue and hygiene market witnessed a positive performance in 2024, mainly triggered by economic strength and a reduction in smuggling activity from Argentina. Moreover, Paraguay’s GDP climbed by almost 4% year-on-year, while the country’s inflation decelerated for the second consecutive year, reaching its lowest level since 2020. Consequently, consumer disposable incomes increased.

The robust economy of Paraguay in 2024 was a significant determinant driving up demand for home care products. In addition, local consumers gained purchasing power because inflation dropped for the second consecutive year. While this helped to boost consumer spending power, poverty remained high in the country. Another important driver for local retailers distributing home care products in Paraguay in 2024 was the reduction of small and medium-scale smuggling from Argentina.

This report covers the retail sector in Frontier Markets in South America. Euromonitor International’s definition of the region includes the following countries: Bolivia, Ecuador, Paraguay and Uruguay.

Ageing, urbanisation and migration continue to be major factors shaping the global population. The number of seniors around the world kept expanding in 2021 and is expected to grow further in the years to 2040. The number of small children is systematically falling globally due to decreasing fertility rates, later marriages and other factors influencing the change in lifestyles. Containment of the pandemic, gradual lift of the restrictions and political unrest encourage greater mobility and migr

The report examines key factors in supply chain risks in metals, energy and agricultural commodities. Production, market supply concentration and political risks analysis can help to better identify potential risks and prepare for potential disruptions. The briefing also identifies key industrial sectors and countries that are most vulnerable to commodity supply disruptions.

The report provides a global overview of production, consumption and prices of soybeans. Soaring input costs and supply disruptions put pressure on soybean producers and add more volatility to the market. Meanwhile, dry weather in South America has resulted in tightened global supply in 2021/2022, adding to upward pressure on soybean prices. Over the long term, rising demand for animal protein from the world’s growing population is set to support consumption of soybeans, an important feed input.