The World Bank has upgraded Paraguay’s economic growth forecast to 4.7% for 2026, positioning it as the top-performing economy in the region. The revision was announced in the bank’s updated analysis for October, which represents an improvement from its previous forecast published in June.
According to the report, Paraguay continues to demonstrate a performance superior to the regional average. Its annual growth has consistently exceeded 4%in recent years. This sustained expansion is supported by a stable macroeconomic framework and robust domestic demand.
Consolidated investment rating
The World Bank report also highlights the country’s financial stability as a key factor in its success. This has been recognised by major international credit rating agencies, contributing to a positive economic environment: ‘Its consolidated investment-grade rating has further strengthened the confidence of international markets,’ the World Bank highlights.
This economic trajectory is fuelled by several key sectors. Strong agricultural exports, particularly of soybeans and beef, provide a solid foundation for growth. Furthermore, an expansion in electricity generation, primarily from its vast hydropower resources, has also contributed significantly. The stable macroeconomic policies continue to support both investment and consumption within the country.
Future economic outlook
Looking ahead, the World Bank projects that Paraguay’s economy will maintain its strong momentum. For 2027, growth is anticipated to reach 4.1% of GDP. Following that, the forecast for 2028 indicates a growth rate of around 4.0%.
This outlook places Paraguay in a favourable position compared to its neighbours, many of whom are projected to experience more modest growth.
Regional growth forecasts
For 2026, the World Bank has provided forecasts for other countries across the region. Argentina and Brazil are both expected to see their economies grow by 2.1%. Uruguay’s growth is projected at 1.2%, while Bolivia is forecast to experience a negative performance of -2.8%.
Elsewhere in South America, predicted growth rates vary. Chile is expected to see an expansion of 0.8%, with Colombia’s economy projected to grow by 2.3%. Meanwhile, Ecuador is forecast to grow by 2.8%, and Peru by 3.2%.
