BBC News Brasil
·Jul 2026
5 reasons for Paraguay's economic boom (and its effects on the country)
Paraguay has experienced rapid economic growth driven by strong agricultural performance, abundant and inexpensive renewable energy, rising foreign investment, low taxes, and expanding infrastructure. Poverty has fallen and credit ratings have improved, increasing investor confidence. Despite these gains, inequality, informal employment, and limited public revenue remain major challenges. Economists expect growth to continue at a slower but stable pace, with long-term progress dependent on improved productivity, infrastructure, and inclusive development.