Cross-border payment solution empowering your business presence across Latin America

Paraguay

Paraguay's economy in 2025 is demonstrating strong performance with growth forecasts revised upwards to 4.4%, reflecting a robust and diversified economic expansion. This marks a continuation of high growth rates sustained for three consecutive years, a level not seen since the mid-2000s. Economic dynamism is driven primarily by the services sector, supported by an anticipated increase in trade activity and remote services such as financial intermediation, commerce, and household services.

The primary sector, boosted by agriculture and livestock, is expected to grow significantly, with beef exports alone surpassing US$1 billion in the first half of 2025 due to strong volumes and favorable prices. This marks a resurgence in Paraguay's position as a major regional beef exporter. Manufacturing and construction also contribute positively, with the latter supported by both private and public investment projects, including energy infrastructure and urban development.

Inflation has moderated in the second quarter, aided by falling food prices in key volatile segments such as fruits and vegetables, and is projected to end 2025 near 4%, aligning gradually with the Central Bank's target. Private consumption and gross fixed capital formation are on the rise, supporting domestic demand and investment.

Macroeconomic stability is reflected in sustained fiscal discipline, with public debt around 40% of GDP—among the lowest in the region—and growing tax revenues that reflect increased economic activity. Paraguay's sound macroeconomic policies provide a resilient foundation to absorb external shocks, though risks remain from global uncertainties, including commodity price fluctuations and geopolitical tensions.

The business environment in Paraguay benefits from competitive natural resources, a young and growing labor force, and strategic investments in infrastructure and energy. Opportunities exist in agribusiness, manufacturing, construction, and services, alongside emerging sectors such as renewable energy and technology. Strong export markets in the United States and Asia incentivize continued production growth and diversification.

Overall, Paraguay in 2025 offers a compelling economic landscape characterized by sustained growth, increasing trade and investment, controlled inflation, and improving fiscal health, positioning it as one of Latin America's rising economic stars and an attractive destination for business and development.

Payment methods in Paraguay: