Capital attracted under Paraguay’s Investment Attraction Law has reached a total of US$323 million by the end of May 2026, an amount that consolidates the significant role of the industrial sector. This figure represents a substantial 29% increase when compared to the same period in the previous year. The data, released by the Viceministry of Industry, indicates a growing momentum in economic activity, strong industrial growth, and investor confidence within the country. The growth is not only reflected in monetary value but also in the volume of new initiatives getting underway.
This dynamism is further evidenced by the number of investment projects approved during the first five months of 2026. A total of 88 projects received approval, marking a 24% rise in comparison to the same timeframe last year. This steady increase in approved ventures suggests a sustained interest in establishing and expanding operations in Paraguay, pointing towards a favourable business environment. The projects span a diverse range of industries, reinforcing the broad-based nature of the current economic expansion.
A significant boost in May
The month of May was particularly strong for investment, contributing significantly to the year’s cumulative total. During this month alone, 13 new projects were approved, amounting to an impressive US$140 million. This single month’s activity accounts for a large portion of the total capital registered so far in 2026. An overwhelming 94% of the investment value approved in May was directed towards specific industrial initiatives. These key areas included the manufacturing of glass and glass products, the production of biofuels, and the plastics industry. Other notable projects approved during this period involve the production of balanced feed and supplements for animals, clothing and textiles, as well as grain production and storage, among other sectors.
The concentration of investment in these high-value areas underscores a strategic focus on developing Paraguay’s manufacturing capabilities. The emphasis on biofuels aligns with global trends towards sustainable energy, while investments in glass and plastics point to a strengthening of the domestic supply chain for construction and consumer goods. Consequently, this targeted capital injection is poised to enhance the nation’s industrial self-sufficiency and export potential.
Strong industrial growth leads investment
An analysis of the year-to-date figures confirms the manufacturing industry’s dominant position. By the end of May, a remarkable 84% of all projected investments were allocated to key industrial sectors. These include the previously mentioned glass manufacturing, alongside food products, chemical-pharmaceuticals, biofuels, and animal meat processing. This highlights a clear trend where the majority of new capital is being channelled into value-added production rather than primary resource extraction. This strategic allocation is fundamental for long-term economic development and diversification.
When broken down by broader economic sectors, the data shows that the secondary sector, which encompasses manufacturing and industry, accounts for 94% of all planned investments. In contrast, the primary sector, which includes agriculture and raw material extraction, represents the remaining 6% of the projected total. This distribution clearly illustrates the leading role that manufacturing is currently playing in driving economic growth and attracting new capital to the nation.
Domestic investment shows robust growth
A significant portion of this economic momentum is being driven by local capital. Domestic investment reached a total of US$273 million, which represents a powerful 38% increase compared to the same period in the previous year. This surge in local investment demonstrates strong confidence from Paraguayan entrepreneurs and businesses in the national economy. However, this growth in domestic funding was tempered by a slight downturn in foreign investment, which recorded a 7% decrease when compared to the 2025 figures. This dynamic suggests that while local investors are increasingly active, attracting further international capital remains a key area of focus.
The expansion of productive activity is not limited to a single region but is being distributed across the country. According to the report, 78% of the investments accumulated in the first five months of the year are concentrated in the departments of Presidente Hayes, Central, Caaguazú, Itapúa, and Paraguarí. This geographical spread is crucial for promoting balanced regional development and ensuring that the economic benefits of this investment wave are felt in various parts of Paraguay, creating opportunities beyond the traditional economic centres.
New projects to generate significant employment
The approved investment projects are also expected to have a substantial impact on the labour market. It is projected that these new ventures will create 1,764 new jobs. A significant majority of these positions, approximately 78% , will be in key industrial areas that are receiving the most investment. These sectors include the manufacturing of food products, clothing and textiles, chemical-pharmaceuticals, plastics, and glass products, resulting in strong industrial growth.
Also read: Paraguay Proposes New Industrial Parks Law To Attract Investment.
