Paraguay’s economy has shown strong results during the first two months of the year. Particularly, during the first two months of 2026. Authorities expect a record soybean harvest, which could lead to an upward revision of the country´s economic growth projections. This, according to Economy and Finance Minister Carlos Férnandez Valdovinos.
Paraguay’s economy, which is once again projected to post solid growth this year, has also strengthened its position in international financial markets. This follows the country’s recent historic issuance of local currency bonds worth US$1 billion. As well as the achievement of a second-grade investment rating. However, the government acknowledges that one of the key challenges remains ensuring that strong macroeconomic results translate into tangible improvements in people’s daily lives.
Paraguay’s economy boosted with strong agricultural performance
Based on early indicators from the first two months of the year, the Central Bank of Paraguay (BCP) may need to revise its economic growth forecast for 2026. Minister Valdovinos highlighted the strong performance of agricultural activity. Particularly, the soybean harvest is currently exceeding initial estimates.
The minister explained that these favorable conditions could support an adjustment in Paraguay’s economic outlook by the Central Bank. The BCP currently forecasts economic growth of 4.2% for the year. This follows an estimated expansion of around 6% in 2025.
According to Valdovinos, early economic indicators already suggest a positive outlook. Maintaining this sustained growth trajectory will remain essential for strengthening economic stability and investor confidence.
Consistent growth and Paraguay’s economic outlook
The minister noted that if the improved projections are confirmed, Paraguay’s economy could record an average economic growth rate. This economic growth would be around 5% for a fourth consecutive year. Such performance would send a strong signal to investors and international credit rating agencies. These investors and agencies closely monitor economic and sustained growth.
“This would be the fourth year with an average growth rate of around 5%. And it is not an accident”, Valdovinos said. “It indicates that the country’s potential growth rate may be higher than previously estimated. Before, it was considered to be around 3.5%.”
IDB annual meetings
Another factor expected to stimulate Paraguay´s economy is the upcoming Inter-American Development Bank (IDB) annual meetings. With their Board of Governors, this meeting will be hosted in Paraguay. The sector expected to be more stimulated is the private sector.
Valdovinos stated that the event is likely to generate increased interest in investment opportunities. Also, strategic partnerships involving Paraguayan businesses. According to him, in addition to official government meetings, the event will include conferences and activities. These have the focus of promoting business opportunities within the private sector.
The gathering will place Paraguay in the spotlight for international markets and investors. The investors will travel to the country to explore potential investment projects. The meetings will take place from 11 to 14 March. They will be held at the headquarters of CONMEBOL, where a broad agenda of forums, discussions, and the assembly of governors will be held.
Economic optimism accompanied by structural challenges
Despite the positive outlook for Paraguay’s economy, authorities recognise structural challenges. Such as the benefits of the macroeconomic stability must increasingly translate into improvements in living standards. Paraguay continues to receive international recognition for its economic stability and financial credibility. However, ensuring that growth reaches households and workers remains a central policy challenge.
The strong start to the year suggests that Paraguay’s economic performance may once again exceed expectations. Particularly, if favourable agricultural conditions and investor interest continue throughout the year.
