Paraguay economy grows through construction and foreign investment

Paraguay is experiencing significant economic dynamism driven by the construction and real estate sectors. According to CAPACO, the construction industry saw a 9.1% year-on-year employment growth in the second quarter of 2026, employing 262,000 people, which accounts for 8% of the national workforce. Average wages in this sector rose by 17.6% to PYG 3.5 million per month.

The real estate market has also expanded by 43% over the last decade, supported by macroeconomic stability and increased foreign investment. This growth is attracting international interest, with investors from Europe, including Spain and Germany, choosing Paraguay over other destinations like Guyana or the UAE due to local economic stability.

Furthermore, the formation of new businesses is surging through Simplified Shares Companies (EAS). Between January and July 2026, 5,926 EAS were established, mobilizing US$ 384 million in capital. While 85% of this is national investment, 15% comes from abroad, with significant contributions from Brazil, Argentina, Spain, and Bolivia. This influx of capital is exerting downward pressure on the US dollar against the guaraní.