President Santiago Peña emphasized this advancement as the result of decades-long prudent monetary and fiscal policies, signaling readiness for further upgrades from Fitch. Moody’s early award of investment grade elevated foreign investor confidence, with investment growth outpacing GDP at approximately 8.8%. The dual investment grade status facilitates access to cheaper international capital, evidenced by successful bond issuances at lower interest rates and increased issuance in local currency.
Infrastructure investment between 2024 and 2025 surged beyond USD 1 billion with landmark projects financed via public-private partnerships and turnkey contracts, spanning roads, hospitals, schools, and sanitation nationwide. In 2026, infrastructure spending is set to triple to around USD 3.2 billion, focusing heavily on key highway expansions, health facilities, urban development, and clean energy initiatives. The Ministry of Public Works plans to rely extensively on private financing mechanisms in tandem with the sovereign rating uplift.
Sector leaders from agriculture, construction, logistics, and hospitality recognized 2025 as a year of robust economic performance supported by these developments, anticipating sustained momentum for 2026. Challenges remain in further institutional strengthening and cost management, yet the credit rating milestone signals Paraguay’s transition into the investment-grade club of Latin America, attracting diversified investors and enabling long-term economic growth.
This article was curated and published as part of our South American energy market coverage.
