Paraguay economic and fiscal projections

Paraguay is experiencing shifts in its economic landscape, driven by demographic changes and evolving fiscal management. The silver economy, representing the population over 50 years old, is a significant emerging market. This demographic currently accounts for US$ 10 billion in annual private consumption, or 19% of total national spending, and is projected to reach US$ 24 billion by 2043.

Concurrently, the Ministry of Economy and Finance has released its 2026 Public Finance Report. Following a 6.6% growth rate in 2025, the economy is projected to expand by 4.5% in 2026, supported by the services, manufacturing, agriculture, and electricity sectors.

Fiscal projections indicate a temporary increase in the deficit to 3.2% in 2026 and 3.9% in 2027 to settle inherited debts with medical supply and road construction firms. The government intends to return to a 1.5% deficit limit by 2028. Central administration debt is expected to decrease from 36.1% of GDP in 2025 to 31.0% in 2026, aided by national currency appreciation.