Paraguay’s economy is expected to close 2025 with strong momentum, according to updated official projections. The Central Bank of Paraguay (Banco Central del Paraguay, or BCP) has raised its Gross Domestic Product growth estimate to 6%. Previously, the BCP had forecast growth of 3.8%. This revision reflects stronger economic performance than initially anticipated. Overall, recent indicators suggest sustained expansion across the economy.
Strong economic performance
Earlier this month, the Central Bank of Paraguay presented its updated forecast during a keynote economic conference. The event, titled “Paraguay: 2025 Assessment and 2026 Outlook”, brought together policymakers and economic analysts. During the presentation, BCP President Carlos Carvalho explained the reasons behind the revision. He emphasised the consistency of recent economic data.
According to Carvalho, high-frequency and short-term indicators point towards continued economic growth. For this reason, the bank expects the economy to close the year expanding at 6%. Previously, the BCP had forecast growth of 3.8%. However, that estimate proved too cautious.
Carvalho acknowledged that the earlier projection underestimated the economy’s real capacity. Nevertheless, he stressed that the BCP maintains a conservative approach to forecasting. As a result, the updated estimate is considered both realistic and responsible. This shift highlights the economy’s unexpected strength.
Paraguay, well above regional averages
Notably, the projected 6% growth places Paraguay well above regional averages. In fact, it almost triples the average growth estimates of other countries in the region. Moreover, it surpasses the 4.7% growth recorded by Paraguay in 2025. Consequently, Paraguay stands out within South America.
Carvalho also highlighted that economic growth has been balanced across sectors. Importantly, no sector has been left behind during this expansion. This equilibrium has contributed to overall economic stability. In turn, it has strengthened confidence in long-term performance.
The labour market has also benefited from this positive trend. Throughout the year, approximately 146,000 new jobs were created nationwide. Most of these positions emerged within the formal sector. Therefore, employment conditions have shown clear improvement.
Structural change and future outlook
Paraguay’s economy continues to perform strongly. According to the BCP, this resilience reflects an ongoing structural transformation. Increasingly, the economy is growing through its own internal drivers. This marks a significant shift in development patterns.
Growth above 5% has been recorded across all three major economic sectors. However, non-traditional sectors now play a leading role in expansion. In contrast, agriculture and binational entities have slowed. Meanwhile, the secondary and tertiary sectors drive recent growth.
Looking ahead, the outlook remains optimistic. If projections hold, Paraguay would achieve four consecutive years of growth above 5%. According to Carvalho, this performance is unprecedented in national history. Ultimately, this phenomenon signals a more diversified and resilient economy.
