Paraguay economic development and investment initiatives

Paraguay is actively pursuing international economic engagement and domestic structural improvements to bolster its business profile.

Initial efforts focused on strengthening ties with Europe, specifically through a commercial mission to Italy’s Umbria region to foster cooperation in the food, gastronomy, and wine sectors. Additionally, the country prepared to host the 3rd RIMEL International Summit in Asunción, an event centered on the circular economy and positioning Paraguay as a regional hub for investment and production.

Recent data indicates significant growth in the maquila sector, which reported USD 1.148 billion in exports between January and September 2026, representing a 25% year-on-year increase. This sector, employing 36,382 people, primarily exports auto parts, apparel, beverages, and aluminum manufactures to Mercosur markets, specifically Brazil and Argentina.

In the tourism sector, Minister of Industry and Commerce Marco Riquelme has emphasized the necessity of increasing investment, formalizing sectors, and improving credit access to enhance competitiveness. This follows a promotional agenda launched by Argentina’s Secretary of Tourism, Daniel Scioli, aimed at addressing a significant tourism trade deficit that saw a negative balance of over 859,000 passengers in 2025.

To support long-term development, the Inter-American Development Bank (IDB) suggested that Paraguay can sustain infrastructure investment while meeting fiscal deficit goals by utilizing capital markets, concessions, and public-private partnerships. Concurrently, foreign interest remains steady, with the German Rödl Group evaluating expansion and investment opportunities to support German companies interested in the local market.