Paraguay climbed from a score of 2.044 in the 2024 Global Peace Index (GPI) to 1.981 in the 2025 edition, that has been released this June. The score shows a notable improvement of 0.063 points, signalling reduced levels of violence, and better security conditions. An improved GPI score reflects fewer reported homicides, reduced violent demonstrations, and enhanced public confidence in law enforcement.
For Paraguay’s citizens, this translates into safer streets, more stable communities, and a strengthened rule of law. All vital factors for attracting foreign investment, and supporting local business growth.
The Global Peace Index
The Global Peace Index compiled annually by the Institute for Economics & Peace, ranks 163 countries on peacefulness using 23 qualitative and quantitative indicators across three domains: Societal Safety and Security; Ongoing Conflict; and Militarisation. Policymakers, investors, and civil society use the GPI to gauge how violence and stability affect economic and social development.
Although Paraguay’s global rank shifted marginally from equal 73rd to 75th place, the lower score reveals genuine progress. This change echoes a slight uptick in the Safety and Security domain seen in 2024, where key indicators such as the homicide rate and perceptions of criminality improved slightly worldwide.
South America improves, Paraguay moves up
As for the continent, South America was the only region to experience an improvement in peacefulness in the 2025 GPI, with the average level of peacefulness improving by 0.59 percent. While Paraguay occupies 75th place globally, it now ranks fourth among South American countries, behind Argentina, Uruguay, and Chile, and has moved up one position from fifth last year.
Challenges and next steps
Paraguay’s score on the GPI index of ongoing conflicts for 2025 is 1.453, reflecting its minimal involvement in external disputes, but representing a slight increase compared to other similar countries.
In the area of militarisation, which measures military spending, personnel, and arms imports, Paraguay contributes to a broader trend shift at the regional and global levels. After sixteen years of gradual improvement, the area of militarisation deteriorated in 108 countries in 2024, driven largely by increased defence spending and arms transfers.
Continuous monitoring of these areas will be essential for Paraguay to translate its overall progress in peace into lasting social security.
Despite progress, Paraguay must guard against complacency. The Ongoing Conflict and Militarisation domains both saw slight global deteriorations in 2024, highlighting the need for continued vigilance.
Consumer Price Index
Paraguay’s consumer prices rose sharply from 100 in 2010 to 170 in 2024, based on 2024 trends reported in the 2025 GPI. These numbers indicate faster-than-normal inflation. While a little inflation can mean people are spending and the economy is growing, such large increases make everyday goods and services much more expensive for families. In short, the steep climb in prices poses a real challenge for both consumers and the wider economy.
A wider South American trend
Paraguay’s 2025 improvements form part of a wider South American trend: seven of the region’s eleven countries recorded better overall GPI scores, making South America the only continent to advance its peacefulness this year. By joining neighbours such as Peru and Argentina in reducing levels of violence, Paraguay contributes to a continental trend that investors and policymakers are closely watching.
As Paraguay cements its place among the continent’s safer nations, it must maintain downward pressure on violence indicators, and manage economic challenges if it is to secure lasting safety and stability.
Due to enhanced safety and other contributing factors, Paraguay is quietly, but steadily carving out a space for itself on South America’s tourists map.
