Key Factors
- Paraguay’s exercise indicator rose 5.9% in December, closing 2025 with 6% cumulative development — far above the Central Financial institution’s preliminary 3.8% forecast
- File corn harvests, an 8.2% manufacturing surge, and broad providers enlargement drove twelve consecutive months of positive factors throughout all sectors
- With inflation at 3.1% and over $700 million in permitted investments, the landlocked economic system is Latin America’s quiet outperformer
Six p.c development. Inflation at 3.1%. Each sector optimistic for twelve straight months. Paraguay’s 2025 report card, launched Wednesday by its Central Financial institution, reads like a want listing for many Latin American finance ministers — and it got here in nicely above what even Asunción anticipated.
The month-to-month exercise indicator (IMAEP) rose 5.9% year-on-year in December, capping a full-year enlargement that almost tripled the regional common. The Central Financial institution had initially forecast 3.8%. “We underestimated the capability of the Paraguayan economic system,” BCP President Carlos Carvallo acknowledged when the improve grew to become clear.
Agriculture anchored the growth. The first sector grew 7.4% for the 12 months, fueled by report corn and robust wheat, rice, and cotton harvests — although weaker soybean output tempered the consequence. Manufacturing shocked much more, surging 8.2% in December and 5.7% for the 12 months, led by oils, dairy, sugar, and metals. Building expanded on accelerating private and non-private works.
Providers, the most important phase, grew 5.1% yearly, with monetary intermediation, transport, inns, and telecoms all contributing. The breadth issues: not like commodity-dependent neighbors, Paraguay‘s enlargement was balanced throughout sectors, underpinned by 146,000 new jobs created throughout the 12 months.
What makes this internationally related is the soundness accompanying the expansion. Inflation closed under the Central Financial institution’s personal forecast. The benchmark charge held at 6%. Moody’s awarded investment-grade standing in 2024, and over $700 million in new investments had been permitted in 2025, together with 21 maquila tasks in auto components, textiles, and meals processing. The Central Financial institution tasks 4.2% for 2026 — which might give Paraguay 4 consecutive years above 4%, an unprecedented streak.
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