Paraguay's growth hits infrastructure bottlenecks

Economic growth and capital attraction

Paraguay is going through a prominent economic moment driven by the massive arrival of foreign capital and investors, attracted by long-term macroeconomic stability and a competitive tax regime. Information originally published by the ABC Color newspaper indicates that the country recorded expressive marks in the flow of visitors and residency applications, a reflection of two decades of fiscal prudence, inflation control, and the benefits of the maquila regime.

Main challenges pointed out by the report

• Limited infrastructure: Only 16% of highways are paved and logistical bottlenecks affect production outflow and river navigability.
• Necessary investments: The country needs about 10 billion dollars by 2030 to modernize transport and energy networks.
• Tax burden and collection: Tax collection remains around 16% of GDP, reflecting the weight of informality in the economy.
• Legal and institutional security: International reports highlight that institutional weakness and the perception of corruption are among the main obstacles to sustainable development.

Economic progress is also sustained by the achievement of investment grade and access to the regional market, which has encouraged foreign companies to relocate production lines. However, analysts warn that overcoming structural barriers, such as energy and educational bottlenecks, will be decisive to consolidate the business environment in the medium and long term.

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