Industry and Commerce Minister Javier Giménez recently highlighted Paraguay’s commitment to a free market economy and its ambitious Paraguay 2X plan, which aims for a double-digit economic growth over the next decade. Giménez made these remarks during his address at the Conservative Political Action Conference (CPAC) in Asunción. He emphasised Paraguay’s understanding of the link between freedom and prosperity.
Giménez stated that Paraguay prioritises economic freedom – freedom to establish businesses, trade freely, and grow without excessive government intervention or fear of asset seizures. He noted that this approach has yielded remarkable results.
The Paraguay 2X plan
Minister Giménez spearheaded the Paraguay 2X plan, which focuses on export-led growth through industrial and productive transformation. The plan targets about 30 products with strong export potential to drive double-digit growth.
The strategy involves three key initiatives. Firstly, increasing the productivity of key products such as soybeans, beef, soy oil and meal, rice, and maize, by reducing the productivity gap between producers. Secondly, enhancing industrial production by creating goods with higher added value, focusing on areas where Paraguay possesses a competitive advantage. This double-digit economic growth will be supported by financial incentives.
Finally, the plan includes measures to facilitate the creation of new industries, including electro-intensive industries, data centres, heavy chemical industries, and green fertilisers. These initiatives leverage Paraguay’s competitive advantages in areas such as abundant agricultural land, low taxes, a favourable demographic dividend, and low energy costs for industry.
Implementation and regulatory reform
Giménez concluded by stating that over the next three years, Paraguay will implement approximately 400 specific actions under the Paraguay 2X plan. These actions aim to provide the private sector with a more modern and efficient operating environment through regulatory reforms, knowledge generation, and infrastructure improvements.
Economic growth and future projections
Paraguay’s economic performance has been strong, outpacing the average growth rate of Latin America and the Caribbean by nearly double in 2024. This success, Giménez explained, follows decades of implementing free market policies, including significant tax reductions, which have attracted considerable investment. To achieve the goal of doubling its economy, Paraguay needs to maintain an average annual growth rate of 7 percent.
While at CPAC, Giménez expressed confidence in achieving this target, citing the country’s 4.2 percent growth in 2024 and the Central Bank of Paraguay’s projection of 4.5 percent growth for 2025. While these figures are positive, Giménez indicated that they are not sufficient to meet the ambitious goals of the Paraguay 2X plan.
The Central Bank of Paraguay also revised its 2025 growth forecast upward, from 4.0% to 4.4%, citing stronger-than-expected performance in services, livestock, and manufacturing. If achieved, this would mark the third consecutive year of growth above 4%, reinforcing the country’s positive economic momentum.
