Paraguay registered a record net inflow of foreign direct investment (FDI) in 2025, reaching US$1.15 billion, according to the latest report from the Central Bank of Paraguay. This figure represents the highest amount in the historical series from 2008 to 2025 and marks a 3% increase compared to 2024.
The Central Bank of Paraguay (BCP), the country’s highest monetary authority, explained that this strong performance was primarily driven by capitalisations and reinvested profits. Throughout 2025, gross capital inflows amounted to US$4.59 billion, while outflows totalled US$3.44 billion. These movements were partly offset by net outflows related to financial operations between associated companies in Paraguay and abroad.
Investment stock and valuation
The total stock of foreign direct investment stood at US$14.77 billion at the close of 2025. This represents a significant 32% increase over the 2024 figure. The bank’s report attributes this result to both the recorded capital flows during the year and valuation effects linked to the exchange rate and other adjustments.
The growing importance of FDI as a source of external financing for the Paraguayan economy is reflected in its contribution to the country’s International Investment Position (IIP). The IIP is a financial statement showing the value of a country’s external financial assets and liabilities. The share of direct investment in the total liabilities of the IIP rose from 14% in 2008 to 36% in 2025.
Sectors with the greatest participation
An analysis by economic activity shows that the commerce sector attracted the largest share of the investment balance at the end of 2025, accounting for 18% of the total. It was followed by financial intermediation with 15%, communications with 9%, and agriculture with 7%. In contrast, the report noted that the commerce, leather and footwear, milling and bakery, and dairy products sectors experienced negative net flows.
Regarding the origin of the capital, countries from the Americas were the most prominent. Brazil, the Netherlands, the United States, Uruguay, and the Cayman Islands were the leading sources of investment balances. The report also highlighted other significant investor countries, including the British Virgin Islands, Argentina, Chile, and Spain. In total, Paraguay received direct investment from 72 different countries in 2025, an increase of four countries from the previous year.
International context and data enhancement
The BCP also highlighted a significant update to its statistical collection methods. This update allowed for the inclusion of an additional 512 companies, bringing the total number of firms covered to 2,004. This enhancement improves the coverage of information and has allowed for a revision of the historical data series back to 2008.
On a global scale, net FDI flows grew by 6% in 2025, reaching a total of US$1.6 trillion. The growth was even more pronounced in Latin America and the Caribbean, which saw a 13.8% increase, while South America specifically recorded a 19.6% rise in FDI.
Also read: Why Paraguay Is South America’s Quiet Foreign Direct Investment Star.
