Paraguay attracts foreign investment
IMIGUAY · Updated on 10/14/2026 · 5 min read
Paraguay attracts productive investments and earns investment grade, but faces structural challenges in education and infrastructure.
Economic growth and capital attraction
Paraguay consolidated its fiscal discipline and strengthened the Banco Central del Paraguay (BCP) after overcoming the 2003 financial crisis, which led rating agencies to grant investment grade to the country's sovereign debt. In addition, the policy of streamlining procedures and strengthening the Ley de Maquila boosted exports of items such as auto parts and textile garments. Local companies and neighboring manufacturers from Brazil and Argentina migrated part of their production to Paraguayan territory in search of tax advantages, contributing to a recent 6.6% growth in Gross Domestic Product (GDP).
Main points of the Paraguayan economy
- Granting of investment grade to the country's sovereign debt.
- 25% growth in maquila exports in 2025 compared to 2019.
- Public spending on education of only 3.5% of GDP.
- Only 16% of the road network is paved, requiring major investments in infrastructure.
Structural challenges for development
Despite advances in the industrial and commercial area, the country still deals with significant obstacles. The primary and food sector accounts for about 70% of exports, while maquila represents only 2.5% of GDP, concentrating on products with lower added value. Issues such as low investment in education and severe deficiencies in road, airport, and river infrastructure limit economic progress. Data from the Inter-American Development Bank (IDB) indicate that Paraguay will need approximately 10 billion dollars by 2030 to modernize transport and roads.
What this means for Brazilians in Paraguay
For Brazilian businesspeople and investors, the scenario demonstrates that the country offers significant tax advantages and macroeconomic stability, but requires attention to logistical bottlenecks and workforce qualification when planning long-term operations. The information was originally published by ABC Color.
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