Concurrently, the Paraguayan government is preparing to submit the Mercosur-EU trade agreement to its National Congress for ratification, aiming to be the first Mercosur country to officially approve the treaty. Despite recent delays and concerns, notably from France’s agricultural sector and the European Parliament’s referral of the accord to the EU Court of Justice for review, the government downplays these as manageable hurdles. The deal promises significant growth opportunities for Paraguay’s agro-industrial sector, exports, and investment inflows.
Economically, Paraguay has demonstrated resilience with a rebound in GDP growth post-2022 drought, achieving a 4.7% growth in 2024 and projected near 6% growth in 2025, alongside falling inflation and unemployment rates. Moody’s and Standard & Poor’s have upgraded the country’s credit rating, fueling market confidence. Challenges remain in managing fiscal deficits and an external accounts imbalance forecast for 2025, but the government’s commitment to macroeconomic stability and foreign investment attraction remains firm. The combination of proactive diplomacy and strengthened trade relationships positions Paraguay as a compelling market in LATAM.
This article was curated and published as part of our South American energy market coverage.
