A Stable Present and a Promising Future for Residents

1.1. Economic Evolution

Over the last 25 years, Paraguay has undergone a notable economic transformation, shifting from a predominantly agrarian economy to one with greater diversification and stability. Driven by the agro-industrial sector, the country has maintained an average GDP growth close to 4% annually, consistently outperforming its regional neighbors.

This expansion, coupled with a fiscal discipline that has kept public debt below 40% of GDP and controlled inflation (frequently within the BCP's target range of 4%), has earned it increasingly positive risk ratings.

The attraction of Foreign Direct Investment (FDI) has been crucial for the development of sectors such as manufacturing (Maquila) and services, while abundant, low-cost hydroelectric energy remains a key competitive advantage. This evolution positions Paraguay as one of the most resilient economies with the greatest growth projection in South America.

1.2. Dynamism and Foreign Investment

While Foreign Direct Investment (FDI) has shown recent volatility (primarily due to a decrease in inter-company loans), announcements of new investment projects have increased, signaling long-term optimism.

Maquila Regime: The Maquila sector, essentially production or services for export, continues to be a capital attractor, featuring an effective tax rate of just 1% on value added.

Sectoral Momentum (2025): Projected growth is mainly driven by:

• Construction: (+12.9% in Q1 2025), supported by public infrastructure spending and private demand.

• Services: (+6.0% in Q1 2025), a sector that directly benefits from the influx of professionals and the demand for technology services.

• Total Investment (Physical and Consumption): The country's total investment grew by 12.7% in the first quarter of 2025, a clear sign of confidence in the economic future.

Paraguay offers the ideal framework of macroeconomic stability and predictability that every investor needs. We are one of the economies with the greatest growth projection in South America.