World Bank projects Paraguay will grow 4.7% in 2026

According to information originally published by ABC Color, the World Bank released new economic projections placing Paraguay among the best-performing countries in Latin America and the Caribbean. For the year 2026, the international organization estimates an expansion of Paraguay's Gross Domestic Product (GDP) of 4.7%, widely surpassing the regional average projected at 2.2%.

Growth projections for Paraguay

The report points out that, although the rate forecast for 2026 represents a slowdown compared to the 6.6% estimated for 2025, the country will continue to show a robust pace of economic activity. For the following years, the World Bank calculates increases of 4.1% in 2027 and 4.0% in 2028. In previous periods, the national economy registered expansions of 5.3% in 2023 and 4.7% in 2024.

• 2026 Forecast: GDP growth of 4.7% according to the World Bank.
• Regional average: The forecast for Latin America and the Caribbean is only 2.2% in the same period.
• Highlight factors: The organization points to improved security, fiscal consolidation, and the solidity of private investment as drivers of the Paraguayan result.

Regional scenario and macroeconomic challenges

The document details that Paraguay, along with El Salvador, stands out for its above-average performance. In contrast, the largest economies in the region will register more moderate rates in 2026, such as Brazil with 2.1%, Argentina with 2.1%, and Mexico with 1.4%. The report also warns about climate risks, such as the El Niño phenomenon, which can impact hydroelectric generation and the agricultural sector, in addition to highlighting the importance of reforms aimed at productivity and the use of new technologies, such as artificial intelligence.

What this means for those who invest and operate in Paraguay

For Brazilian business owners, investors, and holders of local companies with an active RUC, the maintenance of high growth rates above the regional average reinforces the country's macroeconomic stability. An environment with solid macroeconomic frameworks and strong private investment tends to favor predictability for industrial, agribusiness, and real estate businesses, strengthening confidence in the Paraguayan market in the medium term.

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