Paraguay’s economic data: the full picture for prospective investors

Before moving a single euro, it is worth putting Paraguay’s economic data into perspective rather than relying on the headline of the latest viral video. These are the figures a Spanish investor should have to hand.

GDP and growth: the ‘boom’ discussed by the BBC

Nominal GDP is around USD 44.5 billion, with GDP per capita close to USD 5,700. Although below the world average, growth has averaged approximately 3–5.5% annually in recent years, well above neighbouring Argentina and Brazil. The BBC devoted an entire report to this economic ‘boom’, driven by agricultural exports, hydroelectric energy and, increasingly, maquila manufacturing.

What is Paraguay’s main economic activity?

The short answer is agribusiness — soybeans and beef, for which Paraguay is among the world’s largest exporters — hydroelectric energy from Itaipú and Yacyretá, and a growing light manufacturing sector under the maquila regime. It is a small economy but very open to international trade, which explains the strategic importance of infrastructure such as the Bioceanic Corridor.

Population, area and safety: questions asked by prospective residents

Paraguay has just over 6.4 million inhabitants across approximately 406,750 km², a very low population density compared with Spain. The capital, Asunción, concentrates much of the activity. ‘Is Paraguay safe?’ is a common question among Spaniards researching before travelling or investing. It is generally perceived as one of South America’s quieter countries, although, as with any destination, it is advisable to research individual areas.

Trade relations with Spain

According to ICEX figures reported by the CEOE, Spanish exports to Paraguay exceed EUR 140 million a year, and ties are growing as more Spanish companies and individual investors discover the Paraguayan market. This also helps in practical terms: an increasing number of advisers, administrative agencies and law firms in Paraguay are accustomed to working with Spanish clients.

Where to find up-to-date figures

For current figures, the most reliable sources are the Central Bank of Paraguay (BCP), the National Statistics Institute (INE), and international bodies such as the World Bank and ECLAC. Datosmacro is a useful quick starting point, but investment decisions should always be checked against the official Paraguayan source, which is updated more frequently than many aggregators.