A record stock of foreign investment, growth more than twice the regional average and more projects approved by October than in all of last year: Paraguay is quietly pulling in capital.
Paraguay rarely makes headlines, which may be why its numbers surprise. At its October session, the Investment Council approved 18 new projects worth $55.65 million, with 1,266 jobs expected. That brings the January–October total to 171 projects, more than the 162 approved in all of 2025, worth $614.95 million in total and projected to create 5,034 jobs.
Central Bank of Paraguay data point the same way. The stock of direct investment reached $14.77 billion, up 32% on 2024 and equivalent to around 30% of GDP. Brazil is by far the largest source: according to the Paraguay–Brazil Chamber of Commerce, its neighbour has invested more than $2 billion in recent years and is also reinvesting the profits it makes there.
Why it matters
Paraguay offers a combination rare in the region: macroeconomic stability, low taxes, abundant hydropower and access to the Brazilian market. For manufacturers looking to relocate within South America, it is becoming the quiet alternative to the big markets. The challenge is turning approvals into actual disbursements.
In October the World Bank raised its 2026 growth forecast for Paraguay to 4.7%, more than double the Latin American average of 2.2%, crediting improved security, fiscal consolidation and solid private investment. Moody’s and S&P already rate the country investment grade; Fitch keeps it one notch below. The counterpoint is public debt, which has risen over the past year.
Sources: La Tribuna (2 and 3 Nov) · La Nación (2 Nov) · ABC Color (6 Oct) · The Rio Times