🇵🇾 Paraguay

Paraguay is a landlocked constitutional republic in South America, home to 6.7 million people, with its capital at Asuncion.

Overview

Overview

Paraguay at a glance

Paraguay achieved its independence from Spain in 1811. In the disastrous War of the Triple Alliance (1865-70) - between Paraguay and Argentina, Brazil, and Uruguay - Paraguay lost two-thirds of its adult males and much of its territory. The country stagnated economically for the next half century. Following the Chaco War of 1932-35 with Bolivia, Paraguay gained a large part of the Chaco lowland region. The 35-year military dictatorship of Alfredo STROESSNER ended in 1989, and, despite a marked increase in political infighting in recent years, Paraguay has held relatively free and regular presidential elections since the country's return to democracy.

Population
6.7M
#104 World#9 S. America
GDP (PPP)
$45.9B
#99 World#10 S. America
GDP per Capita
$6.8K
#144 World#12 S. America
Area
406.8Kkm²
#60 World#8 S. America
Military Spend
1.7%
#53 World#5 S. America
National Infrastructure

🇵🇾 Paraguay’s critical and strategic infrastructure, sustaining output, agility and endurance

The National Infrastructure Index maps the physical assets national life runs on — power stations and grids, water systems, ports, railways and airports, data networks, payment systems and launch sites. Each asset is placed in a Strategic Infrastructure capability group, so it can be read against the ratings in the National Capability index above.

Assets are chosen for how much of the economy and state depends on them and how hard they would be to replace. Each card records what the asset is, the category it belongs to, what it does and where it is.

Placeholder

Example assets. These twenty cards are modelled on China's most critical infrastructure and show on every nation page until each nation's own assets are mapped.

EnergyWater, Sanitation & WasteTransportCommunications & DigitalFinancialSpace, Aerospace & DefenceResourceAgriculture & FoodAdvanced Manufacturing

Critical infrastructure assetsBack to top ↑

Three Gorges Dam

Energy

The world's largest hydropower station by installed capacity, at 22.5 GW, and the main flood-control structure on the Yangtze.

Yichang, Hubei

Baihetan Hydropower Station

Energy

A 16 GW dam on the Jinsha River, built around sixteen 1 GW turbines, the largest single units in service.

Qiaojia, Yunnan

Changji–Guquan UHVDC Line

Energy

A ±1,100 kV direct-current line carrying 12 GW more than 3,000 km from Xinjiang's power bases to the eastern grid.

Changji, Xinjiang

Daya Bay Nuclear Power Station

Energy

China's first large commercial nuclear plant, in service since 1994, with much of its output sold to Hong Kong.

Shenzhen, Guangdong

South–North Water Transfer, Middle Route

Water, Sanitation & Waste

A canal carrying Yangtze basin water more than 1,400 km north from the Danjiangkou Reservoir to Beijing and Tianjin.

Danjiangkou, Hubei

Beijing–Shanghai High-Speed Railway

Transport

The 1,318 km trunk line between the two largest cities, opened in 2011 and one of the busiest high-speed routes in the world.

Beijing

Port of Shanghai

Transport

The world's busiest container port since 2010, including the automated Yangshan deep-water terminals.

Shanghai

Ningbo-Zhoushan Port

Transport

The world's largest port by cargo tonnage, handling iron ore, crude oil and coal for the eastern industrial belt.

Ningbo, Zhejiang

Beijing Daxing International Airport

Transport

The capital's second international hub, opened in 2019 around one of the largest single terminal buildings in the world.

Beijing

Hong Kong–Zhuhai–Macao Bridge

Transport

A 55 km bridge and undersea tunnel system linking the western and eastern shores of the Pearl River Delta, opened in 2018.

Zhuhai, Guangdong

Qinghai–Tibet Railway

Transport

The 1,956 km line from Xining to Lhasa, crossing the Tanggula Pass at 5,072 m, the highest railway in the world.

Lhasa, Tibet

Gui'an National Computing Hub

Communications & Digital

One of eight national data centre hubs under the East Data, West Computing programme, hosting major cloud providers.

Guiyang, Guizhou

Beijing–Shanghai Quantum Backbone

Communications & Digital

A 2,000 km quantum key distribution trunk line through Jinan and Hefei, completed in 2017 for secure government and bank links.

Hefei, Anhui

Cross-Border Interbank Payment System

Financial

CIPS clears and settles cross-border payments in renminbi, launched in 2015 to extend the currency's international reach.

Shanghai

Wenchang Spacecraft Launch Site

Space, Aerospace & Defence

The coastal launch site for Long March 5 heavy-lift rockets, used for the Tiangong station modules and lunar and Mars missions.

Wenchang, Hainan

Jiuquan Satellite Launch Center

Space, Aerospace & Defence

China's first launch site, founded in 1958 in the Gobi Desert, and the base for every crewed Shenzhou mission.

Jiuquan, Gansu

BeiDou Navigation Satellite System

Space, Aerospace & Defence

The national satellite navigation system, providing global positioning and timing since 2020 from its Beijing control segment.

Beijing

Bayan Obo Mining District

Resource

The world's largest known rare-earth deposit and the core of China's rare-earth mining and refining supply chain.

Baotou, Inner Mongolia

Dujiangyan Irrigation System

Agriculture & Food

A weir and channel system built around 256 BC that still irrigates much of the Chengdu Plain's farmland.

Dujiangyan, Sichuan

Yangtze Memory Technologies Fab

Advanced Manufacturing

China's leading maker of 3D NAND flash memory, central to the drive for a domestic semiconductor supply.

Wuhan, Hubei
National Developments

🇵🇾 Paraguay’s major milestones and key developments

The National Development Index tracks the events that move a nation's capability — policy decisions, technological milestones, economic turns and external shocks — and places each one on the record with the date it happened and what followed from it. It is the narrative counterpart to the indices: where a rating says where Paraguay stands, the index says how it arrived there.

Recent developments cover the current cycle, close enough that their consequences are still unfolding. Historical developments are the inflection points behind the present position — the decisions and events a reader needs in order to read the ratings above in context.

GeopoliticalGovernanceSecurityTechnologyEconomyEnvironmentSociety

Historical Developments

before 1524The Guaraní had settled eastern Paraguay at least a millennium before Spanish arrival 502 years ago

The agricultural Guaraní occupied the lands east of the Paraguay River, while nomadic Guaycuru peoples inhabited the Gran Chaco to the west. These indigenous societies belonged to five distinct language families and their descendants form 17 surviving ethnolinguistic groups. This pre-colonial pattern shaped Paraguay's enduring bilingual, mestizo character.

1524Spanish conquistadores arrived in Paraguay for the first time 502 years ago

Spanish explorers reached the region a millennium after Guaraní settlement, beginning the colonial encounter. Their arrival opened the territory to incorporation into the Spanish Empire.

15 August 1537Spanish colonists founded Asunción on the banks of the Paraguay River 489 years ago

Juan de Salazar de Espinosa established the settlement on the banks of the Paraguay River on 15 August 1537, and it became the first capital of the Governorate of the Río de la Plata and the administrative centre of the Spanish colonial province of Paraguay. Asunción anchored Spanish administration in the interior of South America, served as the base from which other cities in the region were founded, and remains the national capital.

17th–18th centuryJesuit missionaries established Jesuit reductions gathering Guaraní populations at Spanish missions 426 years ago

The reducciones sought to convert the Guaraní while shielding them from enslavement by Spanish settlers and Portuguese bandeirantes, and flourished in eastern Paraguay for around 150 years. They produced a syncretic Catholicism absorbing native elements, and the ruins of La Santísima Trinidad de Paraná and Jesús de Tavarangue are now UNESCO World Heritage Sites.

1767The Spanish Crown ordered the expulsion of the Jesuits from Spanish territories 259 years ago

The Jesuits were suppressed partly because European royal houses accused them of prioritising poor natives over imperial interests. With the missions gone, Paraguay increasingly became a peripheral colony of the empire.

14 May 1811Paraguay declared independence from Spain 215 years ago

A bloodless uprising in Asunción on 14 and 15 May forced the Spanish governor to cede power, making Paraguay one of the first South American colonies to break from Spain.

1814–1840José Gaspar Rodríguez de Francia ruled as perpetual dictator, sealing Paraguay off from its neighbours 212 years ago

Known as El Supremo, Francia governed as perpetual dictator until his death with very little outside contact, seeking a utopian society modelled on Rousseau's Social Contract. He curbed the Catholic Church and the cabinet and restricted marriage among colonial elites to force a mestizo society, while restricting foreign trade and travel to defend the young republic from Argentine and Brazilian pressure, consolidating central authority that shaped Paraguayan governance for decades afterwards.

1820Fulgencio Yegros and independence-era leaders planned a coup against Francia that was discovered and crushed 206 years ago

Objecting to Francia's restrictions on freedom, the conspirators plotted his overthrow. Francia uncovered the plot and had the leaders executed or imprisoned for life, consolidating his absolute power.

1840s–1862Carlos Antonio López built the Fortress of Humaitá and expanded the army 186 years ago

López modernised the Paraguayan Army and strengthened strategic defences, with fortifications along the Apa River and in the Gran Chaco. These preparations underpinned Paraguay's ability to resist the Triple Alliance, and continued under his son Francisco Solano.

1841Carlos Antonio López came to power and opened Paraguay to foreign commerce 185 years ago

After Francia's death in 1840 military officers ruled through a junta militar until López took power in 1841. He modernised the country, ended its isolation and signed a nonaggression pact with Argentina.

1842Carlos Antonio López signed a nonaggression pact with Argentina and officially declared Paraguayan independence 184 years ago

The formal declaration confirmed Paraguay's sovereign status after decades of isolation under Francia. Recognition by Argentina reduced the immediate external threat to the young republic.

1844Paraguay legally abolished slavery in a new constitution 182 years ago

Slavery had existed in Paraguay, though not in great numbers, until the new constitution outlawed it. The measure aligned the state with the mestizo social project pursued since independence.

1850The López government completed the Ybycuí foundry and hired foreign technicians for industry 176 years ago

More than 200 foreign technicians installed telegraph lines and railways to serve expanding steel, textile, paper, naval, weapons and gunpowder industries. The Ybycuí foundry manufactured cannons, mortars and bullets of all calibres, while river warships were built in Asunción shipyards, making Paraguay industrially advanced for the region.

1862Francisco Solano López succeeded his father as President-Dictator 164 years ago

On Carlos Antonio López's death power passed to his eldest son, who continued his father's centralist and protectionist policies. The López family ruled the country as though it were a large estate, controlling exports, church and colleges.

1864–70Paraguay fought Argentina, Brazil and Uruguay in the War of the Triple Alliance 162 years ago

After Brazil, allied with Argentina and Uruguayan colorados, invaded Uruguay on 12 October 1864 to topple López's Blanco allies, Paraguay struck at Mato Grosso on 15 December 1864 and declared war on Argentina on 23 March 1865, drawing itself into conflict with three neighbours. The War of the Triple Alliance devastated Paraguay's population and economy; estimates of civilian and military losses vary widely and no precise figure is agreed, though most historians describe them as severe.

May 1865Argentina, Brazil and Uruguay signed the secret Treaty of the Triple Alliance against Paraguay 161 years ago

Following the installation of a Colorado government in Uruguay under Venancio Flores in February 1865, the three states allied formally on 1 May 1865. The pact committed them to the destruction of the Paraguayan government.

1869The Imperial Brazilian Army carried off the Paraguayan National Archives during the Sacking of Asunción 157 years ago

The archives were packed up and transported to Rio de Janeiro, while Brazil's own war records have remained classified. The loss has made research into Paraguay's colonial and early national history extremely difficult.

July 1869The National Assembly elected a National Junta under Triple Alliance occupation 157 years ago

With Asunción captured, the allies installed a provisional government and on 22 July 1869 the Assembly chose a junta of Carlos Loizaga, Juan Francisco Decoud and Cirilo Antonio Rivarola. Solano López meanwhile evaded capture and led a guerrilla campaign.

1870Francisco Solano López died at the Battle of Cerro Corá, ending the war 156 years ago

Refusing to surrender, López was killed in action, bringing the bloodiest international conflict in the history of the Americas to a close. Paraguay lost 25–33% of its territory to Argentina and Brazil, paid an enormous war debt and sold national properties to stabilise its budget.

1889The National University of Asunción was founded as Paraguay's public university 137 years ago

It became the country's principal public higher education institution after the devastation of the Triple Alliance War. By 2026 Paraguay had 59 universities accredited by the National Council for Higher Education.

1904The Liberals launched a revolution against Colorado rule 122 years ago

The Liberal revolution ended Colorado dominance and opened a period of great political instability. Between 1904 and 1954 Paraguay had thirty-one presidents, most removed by force.

1920s–1930sSlavic immigrants arrived in waves of settlement in Asunción and southern Paraguay 106 years ago

Settlers concentrated in Itapúa, Misiones and Ñeembucú, in towns such as Fram, Coronel Bogado, Encarnación and Pilar. Their arrival added to Paraguay's European-descended communities alongside German-speaking Mennonites in the Chaco.

1920sJosé Asunción Flores developed the guarania musical genre 106 years ago

The slow song form became, with the Paraguayan polka, one of the country's native genres. It gave Paraguay a distinctive national musical idiom.

1922–1923Factions of the ruling Liberal party fought the Paraguayan Civil War of 1922–1923 104 years ago

Conflicts between rival Liberal factions escalated into open civil war. The fighting deepened the instability of the Liberal era.

1932–35Paraguay and Bolivia fought the Chaco War over the sparsely populated Chaco Boreal 94 years ago

The war killed tens of thousands of soldiers on both sides and ended with Paraguay retaining most of the disputed territory under a 1938 peace treaty.

February 1936Colonel Rafael Franco came to power in the February Revolution 90 years ago

On 17 February 1936 military officers exploited popular dissatisfaction with Liberal politicians to seize power. The coup began a period of military-dominated rule.

1940–1948General Higinio Morínigo ruled Paraguay until dissatisfaction produced the 1947 civil war 86 years ago

Morínigo's rule provoked the Paraguayan Civil War of 1947, from whose aftermath the Colorado Party emerged dominant. Politics has been generally dominated by the conservative Colorado Party ever since.

1941The Bruderhof took refuge in Paraguay after being forced to leave England 85 years ago

The pacifist community was expelled from England because of its beliefs and resettled in Paraguay. The episode reflects Paraguay's role as a haven for religiously persecuted groups.

1950s–1960sParaguayan writers produced a new generation of novelists and poets 76 years ago

Figures included José Ricardo Mazó, Roque Vallejos and Nobel Prize nominee Augusto Roa Bastos. Their work established a modern Paraguayan literary presence.

1954–1989Alfredo Stroessner and the Colorado Party ruled Paraguay through repression and death squads 72 years ago

Stroessner oversaw economic expansion and some modernisation but presided over extensive human rights abuses, relying on the military, Interior Minister Edgar Ynsfrán and Colorado militias. His regime sheltered Nazi war criminals including Josef Mengele and won United States backing for its anti-communism.

1954–1989The Stroessner regime illegally granted nearly 8 million hectares of land to supporters 72 years ago

The transfers violated agrarian law and the state has since done nothing to identify the beneficiaries of this illicit enrichment. The resulting land concentration remains a central source of rural conflict, with more than 130 peasant leaders assassinated since 1989.

4 May 1954General Alfredo Stroessner seized power in a coup, beginning a 35-year dictatorship 72 years ago

After a string of plots following the 1947 civil war, General Alfredo Stroessner seized power on 4 May 1954, ending a long period of unstable governments and beginning a 35-year dictatorship. He ruled under a permanent state of siege, curbing political freedoms while granting the military and the Colorado Party extensive control over the state, until his overthrow in 1989.

1960s–2019Paraguay lost nearly 90% of its original forest cover 66 years ago

Clearance was driven mainly by the expansion of agricultural and livestock activities. The country scored 6.39 out of 10 on the 2019 Forest Landscape Integrity Index, ranking 74th of 172 countries.

1970s–1980sBrazilian farmers began settling Paraguay as brasiguaios 56 years ago

Brazilians and their descendants crossed the border from the 1970s seeking cheap land, with the first producers arriving in numbers in the 1980s. By 2019 almost 70% of soy and rice producers in Paraguay were Brazilians or their descendants, causing lasting social disruption.

1973Paraguay and Brazil signed the Itaipu Treaty, launching the world's largest hydroelectric dam 53 years ago

Construction on the Paraná River began in 1975 and the plant entered service in 1984, eventually supplying most of Paraguay's electricity and becoming a pillar of its economy.

Recent Developments

July 2026Paraguay's Congress accused Brazil's president of distorting history last month

Both chambers objected after Brazilian President Luiz Inácio Lula da Silva invoked the 1864–70 War of the Triple Alliance to defend higher Brazilian defence spending, calling his remarks inaccurate.

July 2026The family of journalist Santiago Leguizamón urged Paraguay to comply with an Inter-American Court ruling last month

Relatives of the broadcaster, murdered in 1991, called on the state to fully implement a ruling that found Paraguay responsible for failing to properly investigate his killing on the border with Brazil.

July 2026Mercosur held its 68th summit in Luque, where Paraguay handed the bloc's rotating presidency to Uruguay last month

Leaders meeting in the Paraguayan city pushed for a joint regional security architecture against organised crime and left the summit without resolving a dispute over export quotas under the EU trade pact.

Mercosur opened trade talks with Japan
May 2026The Capricorn Bioceanic Corridor moved into its final stretch, with about 21 metres left to complete a bridge to Brazil 3 months ago

The bridge over the Paraguay River will connect Carmelo Peralta with the Brazilian town of Puerto Murtinho, forming part of a route intended to link the Atlantic and Pacific oceans across four countries.

May 2026The EU–Mercosur Partnership Agreement came into provisional effect, cutting tariffs across the bloc 3 months ago

The trade pact took effect on 1 May 2026 after more than two decades of negotiations, with Paraguay's government forecasting gains for beef, grain and other export sectors.

May 2026President Santiago Peña toured East Asia, visiting Taiwan and the Philippines 3 months ago

The trip reaffirmed Paraguay's position as Taiwan's only remaining South American ally and produced a visa-waiver agreement with the Philippines, Peña's first visit to Manila.

Taiwan welcomed Peña on his first visit to the island
Paraguay and the Philippines signed a visa-waiver agreement
January 2026The government declared its bid to join the OECD a matter of national interest 7 months ago

Paraguay signed a three-year cooperation programme with the OECD in 2025 and President Santiago Peña has said he wants to complete accession before his term ends in 2028, though reviews typically take about five years.

December 2025Paraguayan authorities arrested and extradited fugitive Brazilian police commander Silvinei Vasques 8 months ago

Vasques, wanted over the 8 January 2023 attacks on Brazil's government buildings in Brasília, was detained at Asunción's international airport and handed to Brazilian custody at the end of December.

December 2025S&P Global Ratings raised Paraguay to investment grade 8 months ago

The upgrade followed a similar move by Moody's in 2024 and reflected a fiscal rule capping the central government deficit at 1.5 per cent of GDP, with public debt near 40 per cent of GDP.

October 2025Paraguay's National Defence Council designated the PCC and Comando Vermelho as terrorist organisations 10 months ago

The decision targeted two Brazilian criminal groups active in cross-border trafficking and came months before the United States designated the same organisations, creating a joint legal framework for pursuing their assets and networks.

2023Santiago Peña won the presidential election and was sworn in as president 3 years ago

The Colorado Party candidate won in May 2023 and took office on 15 August 2023, succeeding Mario Abdo. His victory extended the party's long dominance of Paraguayan government.

February 2022Paraguay inaugurated 275 km of the Chaco road linking Brazil to the interior 4 years ago

The stretch connects Carmelo Peralta on the Brazilian border to Loma Plata in the centre of the country, about half the planned route. Combined with duplication of Route 2 towards Ciudad del Este, it improves export corridors for a landlocked state.

2022Paraguay recorded a population of 6,109,944 in the national census 4 years ago

The census found 95% of the population Mestizo or White and 5% other, including 17 distinct indigenous ethnolinguistic groups making up 2.3% of the total. Indigenous poverty stood at 66.2% in the 2017 census, almost three times the national average.

2019The United Nations Human Rights Committee urged Paraguay to investigate mass agrochemical fumigation 7 years ago

The ruling responded to poisoning of populations near soy plantations. It highlighted the environmental and health costs of Paraguay's commodity export model.

2019Asunción hosted the first meeting of the Regional Security Mechanism 7 years ago

The RSM promotes cooperation between Paraguay, Argentina, Brazil and the United States against transnational crime and terrorism in the triple frontier region. Hosting the inaugural meeting gave Paraguay a coordinating role in regional security.

2018–2023Mario Abdo Benítez served as president and aligned Paraguay with Bolsonaro's Brazil 8 years ago

The Colorado president cultivated close ties with Brazilian president Jair Bolsonaro, standing beside him in February 2019 as Bolsonaro praised the dictator Stroessner as a man of vision. The relationship shaped Paraguay's regional alignment.

2016Paraguay became the world's largest exporter of electric power 10 years ago

Installed capacity of 8,110 MW produced 63 billion kWh in 2016 against domestic consumption of only 15 billion kWh. The surplus is sold to Brazil, Argentina and Uruguay, making hydroelectricity a strategic national asset.

2014Paraguay ranked as the world's happiest place in global polling 12 years ago

The Positive Experience Index based on global polling data placed Paraguay first. In 2024 the country placed 24th in the progress rankings of the World Happiness Report.

2013–2018Horacio Cartes served as president after nomination despite party rules 13 years ago

Cartes was nominated as Colorado presidential candidate on 14 January 2011 in breach of the party constitution, and despite US Drug Enforcement Administration accusations over drug trafficking. He governed from August 2013 to 15 August 2018, restoring Colorado control of the presidency.

22 June 2012The Senate removed President Fernando Lugo from office in a rapid impeachment trial 14 years ago

Proceedings opened on 21 June 2012 with Lugo, a former Catholic bishop elected in 2008, given less than a day to prepare and two hours to defend himself, and the Senate removed him on 22 June on vague charges of poor performance of duties, elevating Vice President Federico Franco. Rivals blamed him for the deaths of 17 people in armed clashes over a rural eviction; Lugo denounced the process as a congressional coup, UNASUR and several neighbours agreed, while the OAS concluded it was constitutional.

2012Paraguay's government introduced the MERCOSUR FOCEM system to stimulate growth 14 years ago

The scheme aimed to boost the economy and job creation through partnership with Brazil and Argentina. It deepened Paraguay's integration into the regional trade bloc.

2008Fernando Lugo won the presidency, ending 61 years of Colorado rule 18 years ago

The former Roman Catholic bishop and Authentic Radical Liberal Party member took nearly 41% of the vote against 31% for Colorado candidate Blanca Ovelar, the first woman nominated by a major party. Sworn in on 15 August 2008, he made reducing corruption and economic inequality his priorities, and outgoing president Duarte hailed the first constitutional and peaceful transfer of power to the opposition in national history.

2006–2016Paraguay saw triangulation trade fall from 22% to 12% of GDP 20 years ago

Central Bank data showed re-export trade between China, Paraguay and Brazil, treated by Brazil largely as smuggling, was worth 22% of GDP in 2006. The share halved by 2016 as legalised soy, maize and beef businesses rose in the 2000s.

July 2005US special forces began arriving at Mariscal Estigarribia air base 21 years ago

The deployment supported joint training and humanitarian operations with Paraguay. It reflected continuing security cooperation with the United States.

2003–2013Paraguay grew rapidly on a commodity export boom 23 years ago

Rising world demand for commodities, high prices and favourable weather supported expansion of soybean, beef and grain exports, with average growth around 4% in the 2010s. Growth did not reduce poverty, which still exceeded 26% of the population in 2018.

2003Nicanor Duarte was elected president 23 years ago

Duarte took office as the Colorado Party continued its long dominance of Paraguayan politics. He would later preside over the first peaceful constitutional transfer of power to the opposition.

1998–1999Raúl Cubas was elected president and then impeached and resigned amid crisis 28 years ago

Cubas won free and fair elections in May 1998 and on taking office in August commuted Oviedo's sentence, an act the Supreme Court declared unconstitutional in December. The murder of Vice President Luis María Argaña on 23 March 1999 and the killing of eight student demonstrators on 26 March led to impeachment and Cubas's resignation on 28 March, with Senate President Luis González Macchi peacefully sworn in.

April 1996General Lino Oviedo attempted to oust President Wasmosy and was rebuffed 30 years ago

The Army chief's move was rejected by the Paraguayan people with support from the United States, the Organization of American States and regional countries. Oviedo was later convicted over the attempt and barred from the 1998 presidential election.

May 1993Juan Carlos Wasmosy was elected Paraguay's first civilian president in almost forty years 33 years ago

The Colorado Party candidate won elections that international observers deemed free and fair. His victory marked the consolidation of civilian rule after decades of military dominance.

June 1992Paraguay adopted a new democratic constitution 34 years ago

The charter established a democratic system of government and dramatically improved protection of fundamental human rights. It provided the legal framework for the post-Stroessner republic, including a right of conscientious objection.

1991Paraguay, Argentina, Brazil and Uruguay signed the Treaty of Asunción, founding Mercosur 35 years ago

The treaty, signed in Paraguay's capital, created the Southern Common Market to promote free trade and the movement of goods, people and currency among the four founding members.

3 February 1989General Andrés Rodríguez overthrew Alfredo Stroessner in a coup 37 years ago

On 3 February 1989 General Andrés Rodríguez seized power, ending 35 years of dictatorship and opening a transition to multiparty democracy. As president he instituted political, legal and economic reforms and sought rapprochement with the international community, winning subsequent elections before handing power to civilian successors; the rural poor immediately occupied land belonging to Stroessner's associates, with 19,000 families holding 340,000 acres by mid-1990.

February 1988Alfredo Stroessner claimed re-election with 89% of the vote amid mass arrests 38 years ago

Ahead of the 14 February 1988 general elections the regime imprisoned opposition figures, arrested 200 people at a National Coordinating Committee meeting in Coronel Oviedo and detained Domingo Laíno on election day. Splits in the Colorado Party, economic downturn and international isolation nonetheless emboldened the opposition.

1975Paraguay became a leading participant in Operation Condor 51 years ago

The campaign of state terror was officially implemented in 1975 and jointly conducted by six South American military dictatorships with United States support. Paraguay's prominent role tied its security apparatus into a transnational network of repression.

1974The United Nations accused Paraguay of slavery and genocide against the Aché 52 years ago

Massacres and forced relocation of the Aché of eastern Paraguay accompanied corporate demand for forests, mines and grazing land. Only a few hundred Aché remained alive by the late 1970s, a genocide the regime financed with US aid.

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Historical Context

🇵🇾 Paraguay’s understanding the origins and evolution of the modern nation

Capital
Asuncion
Government
constitutional republic
Independence
14 May 1811
Population·2014
6.7M
GDP (PPP)
—

BackgroundBack to top ↑

Paraguay achieved its independence from Spain in 1811. In the disastrous War of the Triple Alliance (1865-70) - between Paraguay and Argentina, Brazil, and Uruguay - Paraguay lost two-thirds of its adult males and much of its territory. The country stagnated economically for the next half century. Following the Chaco War of 1932-35 with Bolivia, Paraguay gained a large part of the Chaco lowland region. The 35-year military dictatorship of Alfredo STROESSNER ended in 1989, and, despite a marked increase in political infighting in recent years, Paraguay has held relatively free and regular presidential elections since the country's return to democracy.

IndependenceBack to top ↑

14 May 1811 (from Spain)

National holidayBack to top ↑

Independence Day, 14 May 1811 (observed 15 May)

Geography

🇵🇾 Paraguay’s territory, resources and strategic position

Area
406.8Kkm²
Land Boundaries
4Kkm
Coastline
0km
Maritime Claims
none
Land Use
9.6%

Location and areaBack to top ↑

Location

Central South America, northeast of Argentina, southwest of Brazil

Geographic coordinates

23 00 S, 58 00 W

Map references

South America

Area
total:406,752 sq km
land:397,302 sq km
water:9,450 sq km
Area — comparative

slightly smaller than California

Land boundaries
total:3,995 km
border countries:Argentina 1,880 km, Bolivia 750 km, Brazil 1,365 km
Coastline

0 km (landlocked)

Maritime claims

none (landlocked)

Terrain and resourcesBack to top ↑

Terrain

grassy plains and wooded hills east of Rio Paraguay; Gran Chaco region west of Rio Paraguay mostly low, marshy plain near the river, and dry forest and thorny scrub elsewhere

Natural resources

hydropower, timber, iron ore, manganese, limestone

Land use
arable land:9.59%
permanent crops:0.22%
other:90.19% (2011)
Irrigated land

670 sq km (2003)

Settlement and hazardsBack to top ↑

Natural hazards

local flooding in southeast (early September to June); poorly drained plains may become boggy (early October to June)

Geography note

landlocked; lies between Argentina, Bolivia, and Brazil; population concentrated in southern part of country

OtherBack to top ↑

Elevation extremes
lowest point:junction of Rio Paraguay and Rio Parana 46 m
highest point:Cerro Pero 842 m
Total renewable water resources

336 cu km (2011)

Freshwater withdrawal (domestic/industrial/agricultural)
total:0.49 cu km/yr (20%/8%/71%)
per capita:88.05 cu m/yr (2000)
Environment - current issues

deforestation; water pollution; inadequate means for waste disposal pose health risks for many urban residents; loss of wetlands

Environment - international agreements
party to:Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Ozone Layer Protection, Wetlands
signed, but not ratified:none of the selected agreements
Environment

🇵🇾 Paraguay’s environmental conditions, resources and national resilience

Carbon Dioxide Emissions
—
Methane Emissions
—
Particulate Matter Emissions
—
Total Water Withdrawal
—
Waste and Recycling
—

Conditions and issuesBack to top ↑

Climate

subtropical to temperate; substantial rainfall in the eastern portions, becoming semiarid in the far west

Critical Technology

🇵🇾 Paraguay’s technology frontiers and the pursuit of national advantage

Large-Scale AI Systems
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Cumulative Launched
—
Space Agency
—
Launch Sites
—
Programme
—

Technology systemsBack to top ↑

GINC data

Capability-group ratings for Critical Technology are part of the GINC National Capability Framework rather than the country factbook. They are published in the National Capability index, and the per-capability detail lives on the capability pages.

Medicine and BioTechBack to top ↑

Clinical research and life-science invention, drawn from the same series that drive the metric pages. Each card opens the full cross-country comparison.

Clinical Trials·2024
3
#94 World
20002024

Space programmeBack to top ↑

🇵🇾Paraguay
Objects Launched into Space
Annual number of objects launched into outer space, 1950–2025. Paraguay is highlighted; other major launchers are shown in grey.
ParaguayOther major launchers
01K2K3K4K
1950198020002025
Source. UN Office for Outer Space Affairs (2026).
🇵🇾Paraguay
Cumulative Objects Launched
Cumulative number of objects launched into outer space, 1950–2025. Paraguay is highlighted; other major launchers are shown in grey.
ParaguayOther major launchers
05K10K15K20K
1950198020002025
Source. UN Office for Outer Space Affairs (2026).
Strategic Infrastructure

🇵🇾 Paraguay’s energy, connectivity and the material foundations of capability

Airports·2013
799
Railways
36km
Ports
—
Electricity Access
—
Internet Users·2009
1.1M

TransportBack to top ↑

Airports

799 (2013)

Railways
total:36 km
standard gauge:36 km 1.435-m gauge (2008)
Merchant marine
total:19
by type:cargo 13, container 3, passenger 1, petroleum tanker 1, roll on/roll off 1
foreign-owned:6 (Argentina 5, Netherlands 1) (2010)

Digital connectivityBack to top ↑

Telephones - mobile cellular

6.79 million (2012)

Internet users

1.105 million (2009)

Internet country code

.py

OtherBack to top ↑

Electricity - production

53.53 billion kWh (2010 est.)

Electricity - consumption

6.778 billion kWh (2010 est.)

Electricity - exports

46.12 billion kWh (2011 est.)

Electricity - imports

0 kWh (2012 est.)

Electricity - installed generating capacity

8.816 million kW (2010 est.)

Electricity - from fossil fuels

0.1% of total installed capacity (2010 est.)

Electricity - from nuclear fuels

0% of total installed capacity (2010 est.)

Electricity - from hydroelectric plants

99.9% of total installed capacity (2010 est.)

Electricity - from other renewable sources

0% of total installed capacity (2010 est.)

Crude oil - production

2,000 bbl/day (2012 est.)

Crude oil - exports

0 bbl/day (2010 est.)

Crude oil - imports

0 bbl/day (2010 est.)

Crude oil - proved reserves

0 bbl (1 January 2013 est.)

Refined petroleum products - production

0 bbl/day (2010 est.)

Refined petroleum products - consumption

26,820 bbl/day (2011 est.)

Refined petroleum products - exports

0 bbl/day (2010 est.)

Refined petroleum products - imports

31,290 bbl/day (2010 est.)

Natural gas - production

0 cu m (2011 est.)

Natural gas - consumption

0 cu m (2010 est.)

Natural gas - exports

0 cu m (2011 est.)

Natural gas - imports

0 cu m (2011 est.)

Natural gas - proved reserves

0 cu m (1 January 2013 est.)

Carbon dioxide emissions from consumption of energy

3.987 million Mt (2011 est.)

Telephones - main lines in use

376,000 (2012)

Telephone system
general assessment:the fixed-line market is a state monopoly and fixed-line telephone service is meager; principal switching center is in Asuncion
domestic:deficiencies in provision of fixed-line service have resulted in a rapid expansion of mobile-cellular services fostered by competition among multiple providers
international:country code - 595; satellite earth station - 1 Intelsat (Atlantic Ocean) (2010)
Internet hosts

280,658 (2012)

Airports - with paved runways
total:15
over 3,047 m:3
1,524 to 2,437 m:7
914 to 1,523 m:5 (2013)
Airports - with unpaved runways
total:784
1,524 to 2,437 m:23
914 to 1,523 m:290
under 914 m:471 (2013)
Roadways
total:32,059 km
paved:4,860 km
unpaved:27,199 km (2010)
Waterways

3,100 km (primarily on the Paraguay and Paraná river systems) (2012)

Ports and terminals
river port(s):Asuncion, Villeta, San Antonio, Encarnacion (Parana)
National Security

🇵🇾 Paraguay’s force, intelligence and the defence of the nation

Armed Forces Personnel
—
Military Personnel
—
Military Spending
—
Spending (% of GDP)
—
Armed Forces (% of Labour Force)
—

Forces and expenditureBack to top ↑

Military expenditures

1.66% of GDP (2012)//1.16% of GDP (2011)//1.66% of GDP (2010)

Personnel and equipmentBack to top ↑

Military service age and obligation

18 years of age for compulsory and voluntary military service; conscript service obligation is 12 months for Army, 24 months for Navy; volunteers for the Air Force must be younger than 22 years of age with a secondary school diploma (2012)

Forces under armsBack to top ↑

Active-duty strength on the Correlates of War series, which reaches back to 1816 and so carries a nation’s whole record of mobilisation rather than its present establishment. The card opens the full cross-country comparison.

Military Personnel·2022
14,000
#111 World
18162022

OtherBack to top ↑

Military branches

Armed Forces Command (Commando de las Fuerzas Militares): Army, National Navy (Armada Nacional, includes Marine Corps, Naval Aviation, and Coast Guard), Paraguayan Air Force (Fuerza Aerea Paraguay, FAP), Logistics Command, War Materiel Directorate (2012)

Manpower available for military service
males age 16-49:1,678,335
females age 16-49:1,675,352 (2010 est.)
Manpower fit for military service
males age 16-49:1,409,859
females age 16-49:1,433,037 (2010 est.)
Manpower reaching militarily significant age annually
male:73,367
female:71,801 (2010 est.)
Human Capital

🇵🇾 Paraguay’s population, health and the skills that sustain capability

Population·2014
6.7M
Median Age
26.8years
Generative AI Use·2026
12%
Life Expectancy at Birth
76.8years
Total Fertility Rate·2014
2children born/woman

DemographyBack to top ↑

Population

6,703,860 (July 2014 est.)

Nationality
noun:Paraguayan(s)
adjective:Paraguayan
Age structure
0-14 years:26.2% (male 892,315/female 861,915)
15-24 years:20.5% (male 691,365/female 683,653)
25-54 years:39.5% (male 1,326,281/female 1,323,194)
55-64 years:7.2% (male 246,869/female 236,564)
65 years and over:6.4% (male 206,089/female 235,615) (2014 est.)
Dependency ratios
total dependency ratio:60.5 %
youth dependency ratio:51.5 %
elderly dependency ratio:8.9 %
potential support ratio:11.2 (2014 est.)
Median age
total:26.8 years
male:26.6 years
female:27 years (2014 est.)
Population growth rate

1.19% (2014 est.)

Birth rate

16.66 births/1,000 population (2014 est.)

Death rate

4.64 deaths/1,000 population (2014 est.)

Sex ratio
at birth:1.05 male(s)/female
0-14 years:1.04 male(s)/female
15-24 years:1.01 male(s)/female
25-54 years:1 male(s)/female
55-64 years:1.01 male(s)/female
65 years and over:0.87 male(s)/female
total population:1.01 male(s)/female (2014 est.)
Total fertility rate

1.96 children born/woman (2014 est.)

Mother's mean age at first birth

22.9

median age at first birth among women 25-29 (2008 est.)

Migration and urbanisationBack to top ↑

Net migration rate

-0.08 migrant(s)/1,000 population (2014 est.)

Urbanisation
urban population:61.9% of total population (2011)
rate of urbanization:2.55% annual rate of change (2010-15 est.)
Major urban areas — population

ASUNCION (capital) 2.139 million (2011)

HealthBack to top ↑

Life expectancy at birth
total population:76.8 years
male:74.16 years
female:79.56 years (2014 est.)
Infant mortality rate
total:20.75 deaths/1,000 live births
male:24.39 deaths/1,000 live births
female:16.93 deaths/1,000 live births (2014 est.)
Hospital bed density

1.3 beds/1,000 population (2011)

Drinking water source
improved:urban: 100% of population; rural: 83.4% of population; total: 93.8% of population
unimproved:urban: 0% of population; rural: 16.6% of population; total: 6.2% of population (2012 est.)
Sanitation facility access
improved:urban: 96.1% of population; rural: 52.5% of population; total: 79.7% of population
unimproved:urban: 3.9% of population; rural: 47.5% of population; total: 20.3% of population (2012 est.)
Obesity — adult prevalence rate

17.9% (2008)

Children under the age of 5 years underweight

3.4% (2005)

EducationBack to top ↑

Literacy
definition:age 15 and over can read and write
total population:93.9%
male:94.8%
female:92.9% (2010 est.)
School life expectancy (primary to tertiary education)
total:13 years
male:12 years
female:13 years (2011)

Generative AI adoptionBack to top ↑

Modelled share of working-age adults using generative AI, from Microsoft telemetry scaled to each country’s 15–64 population. A measure of how fast a workforce is absorbing the technology rather than of how much of it a nation builds. The card opens the full cross-country comparison.

Generative AI Use·2026
12%
#87 World
20252026

Welfare and equityBack to top ↑

Population below poverty line

34.7% (2010 est.)

Household income or consumption by percentage share
lowest 10%:1%
highest 10%:41.1% (2010 est.)

OtherBack to top ↑

Demographic profile

Paraguay falls below the Latin American average in several socioeconomic categories, including immunization rates, potable water, sanitation, and secondary school enrollment, and has greater rates of income inequality and child and maternal mortality. Paraguay's poverty rate has declined in recent years but remains high, especially in rural areas, with more than a third of the population below the poverty line. However, the well-being of the poor in many regions has improved in terms of housing quality and access to clean water, telephone service, and electricity. The fertility rate continues to drop, declining sharply from an average 4.3 births per woman in the late 1990s to about 2 in 2013, as a result of the greater educational attainment of women, increased use of contraception, and a desire for smaller families among young women.//Paraguay is a country of emigration; it has not attracted large numbers of immigrants because of political instability, civil wars, years of dictatorship, and the greater appeal of neighboring countries. Paraguay first tried to encourage immigration in 1870 in order to rebound from the heavy death toll it suffered during the War of the Triple Alliance, but it received few European and Middle Eastern immigrants. In the 20th century, limited numbers of immigrants arrived from Lebanon, Japan, South Korea, and China, as well as Mennonites from Canada, Russia, and Mexico. Large flows of Brazilian immigrants have been arriving since the 1960s, mainly to work in agriculture. Paraguayans continue to emigrate to Argentina, Brazil, Uruguay, the United States, Italy, Spain, and France.

Maternal mortality rate

99 deaths/100,000 live births (2010)

Contraceptive prevalence rate

79.4%

percent of women aged 15-44 (2008)
Health expenditures

9.7% of GDP (2011)

Physicians density

1.11 physicians/1,000 population (2002)

HIV/AIDS - adult prevalence rate

0.3% (2012 est.)

HIV/AIDS - people living with HIV/AIDS

13,100 (2012 est.)

HIV/AIDS - deaths

300 (2012 est.)

Major infectious diseases
degree of risk:intermediate
food or waterborne diseases:bacterial diarrhea, hepatitis A, and typhoid fever
vectorborne disease:dengue fever (2013)
Education expenditures

4.8% of GDP (2011)

Child labor - children ages 5-14
total number:205,297
percentage:15 % (2004 est.)
Unemployment, youth ages 15-24
total:11.2%
male:9%
female:14.6% (2012)
Disputes - international

unruly region at convergence of Argentina-Brazil-Paraguay borders is locus of money laundering, smuggling, arms and illegal narcotics trafficking, and fundraising for extremist organizations

Governance and Integrity

🇵🇾 Paraguay’s institutions, law and the integrity of the state

Government
constitutional republic
Capital
Asuncion
Administrative Divisions
17departments
Independence
14 May 1811
Suffrage
18years of age; universal and…

State structureBack to top ↑

Country name
conventional long form:Republic of Paraguay
conventional short form:Paraguay
local long form:Republica del Paraguay
local short form:Paraguay
Government type

constitutional republic

Capital
name:Asuncion
geographic coordinates:25 16 S, 57 40 W
time difference:UTC-4 (1 hour ahead of Washington, DC, during Standard Time)
daylight saving time:+1hr, begins first Sunday in October; ends fourth Sunday in March
Administrative divisions

17 departments (departamentos, singular - departamento) and 1 capital city*; Alto Paraguay, Alto Parana, Amambay, Asuncion*, Boqueron, Caaguazu, Caazapa, Canindeyu, Central, Concepcion, Cordillera, Guaira, Itapua, Misiones, Neembucu, Paraguari, Presidente Hayes, San Pedro

Constitution

several previous; latest approved and promulgated 20 June 1992; amended 2011 (2011)

Suffrage

18 years of age; universal and compulsory until the age of 75

Legal systemBack to top ↑

Legal system

civil law system with influences from Argentine, Spanish, Roman, and French civil law models; judicial review of legislative acts in Supreme Court of Justice

International law organisation participation

accepts compulsory ICJ jurisdiction; accepts ICCt jurisdiction

Political institutionsBack to top ↑

Executive branch
chief of state:President Horacio CARTES (since 15 August 2013); Vice President Juan AFARA Maciel (since 15 August 2013); note - the president is both chief of state and head of government
head of government:President Horacio CARTES (since 15 August 2013); Vice President Juan AFARA Maciel (since 15 August 2013)
cabinet:Council of Ministers appointed by the president
elections:president and vice president elected on the same ticket by popular vote for a single five-year term; election last held on 21 April 2013 (next to be held in April 2018)
election results:Horacio CARTES elected president; percent of vote - Horacio CARTES 45.8%, Efrain ALEGRE 36.94%, Mario FERREIRO 5.88%, Anibal CARRILLO 3.32%, other 8.06%
Legislative branch

bicameral National Congress or Congreso Nacional consists of the Chamber of Senators or Camara de Senadores (45 seats; members elected by popular vote to serve five-year terms) and the Chamber of Deputies or Camara de Diputados (80 seats; members elected by popular vote to serve five-year terms)

Judicial branch
highest court(s):Supreme Court of Justice or Corte Suprema de Justicia (consists of 9 justices divided 3 each into the Constitutional Court, Civil and Commercial Chamber, and Criminal Division
judge selection and term of office:justices proposed by the Council of Magistrates or Consejo de la Magistratura, a 6-member independent body, and appointed by the Chamber of Senators with presidential concurrence; judges appointed until mandatory retirement at age 75
subordinate courts:appellate courts; first instance courts; minor courts, including justices of the peace

Rule of lawBack to top ↑

Illicit drugs

major illicit producer of cannabis, most or all of which is consumed in Brazil, Argentina, and Chile; transshipment country for Andean cocaine headed for Brazil, other Southern Cone markets, and Europe; weak border controls, extensive corruption and money-laundering activity, especially in the Tri-Border Area; weak anti-money-laundering laws and enforcement

OtherBack to top ↑

Political parties and leaders

Asociacion Nacional Republicana - Colorado Party or ANR [Lilian SAMANIEGO]//Avanza Pais coalition [Adolfo FERREIRO]//Broad Front coalition (Frente Guasu) or FG [Fernando Armindo LUGO Mendez]//Movimiento Union Nacional de Ciudadanos Eticos or UNACE [Jorge OVIEDO MATTO]//Patria Querida (Beloved Fatherland Party) or PPQ [Sebastian ACHA]//Partido del Movimiento al Socialismo or P-MAS [Camilo Ernesto SOARES Machado]//Partido Democratica Progresista or PDP [Desiree MASI]//Partido Encuentro Nacional or PEN [Fernando CAMACHO Paredes]//Partido Liberal Radical Autentico or PLRA [Miguel ABDON SAGUIER]//Partido Pais Solidario or PPS [Carlos Alberto FILIZZOLA Pallares]//Partido Popular Tekojoja [Sixto PEREIRA]

Political pressure groups and leaders

Ahorristas Estafados or AE//National Coordinating Board of Campesino Organizations or MCNOC [Luis AGUAYO]//National Federation of Campesinos or FNC [Odilon ESPINOLA]//National Workers Central or CNT [Secretary General Juan TORRALES]//Paraguayan Workers Confederation or CPT//Roman Catholic Church//Unitary Workers Central or CUT [Jorge Guzman ALVARENGA Malgarejo]

Flag description

three equal, horizontal bands of red (top), white, and blue with an emblem centered in the white band; unusual flag in that the emblem is different on each side; the obverse (hoist side at the left) bears the national coat of arms (a yellow five-pointed star within a green wreath capped by the words REPUBLICA DEL PARAGUAY, all within two circles); the reverse (hoist side at the right) bears a circular seal of the treasury (a yellow lion below a red Cap of Liberty and the words PAZ Y JUSTICIA (Peace and Justice)); red symbolizes bravery and patriotism, white represents integrity and peace, and blue denotes liberty and generosity

the three color bands resemble those on the flag of the Netherlands; one of only three national flags that differ on their obverse and reverse sides - the others are Moldova and Saudi Arabia
National anthem
name:"Paraguayos, Republica o muerte!" (Paraguayans, The Republic or Death!)
lyrics/music:Francisco Esteban ACUNA de Figueroa/disputed
adopted 1934, in use since 1846; the anthem was officially adopted following its re-arrangement in 1934
Information and Influence

🇵🇾 Paraguay’s identity, media and the projection of influence

Languages
Spanish
Religions·2002
Roman Catholic 89.6%, Pro…
Ethnic Groups
mestizo
Broadcast Media·2010
6privately owned TV stations…
Intl Organisations
CAN

Identity and cultureBack to top ↑

Languages

Spanish (official), Guarani (official)

Religions

Roman Catholic 89.6%, Protestant 6.2%, other Christian 1.1%, other or unspecified 1.9%, none 1.1% (2002 census)

Ethnic groups

mestizo (mixed Spanish and Amerindian) 95%, other 5%

National symbol(s)

lion

MediaBack to top ↑

Broadcast media

6 privately owned TV stations; about 75 commercial and community radio stations; 1 state-owned radio network (2010)

Diplomatic networkBack to top ↑

International organisation participation

CAN (associate), CD, CELAC, FAO, G-11, G-77, IADB, IAEA, IBRD, ICAO, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO (correspondent), ITSO, ITU, ITUC (NGOs), LAES, LAIA, Mercosur, MIGA, MINURSO, MINUSTAH, MONUSCO, NAM (observer), OAS, OPANAL, OPCW, Pacific Alliance (observer), PCA, UN, UNASUR, UNCTAD, UNESCO, UNFICYP, UNIDO, Union Latina, UNISFA, UNMIL, UNMISS, UNOCI, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO

Diplomatic representation in the US
chief of mission:Ambassador (vacant); Chargé d'Affaires Francisco BARREIRO (since 31 October 2013)
chancery:2400 Massachusetts Avenue NW, Washington, DC 20008
telephone:[1] (202) 483-6960 through 6962
FAX:[1] (202) 234-4508
consulate(s) general:Los Angeles, Miami, New York
Diplomatic representation from the US

Ambassador James H. THESSIN (since 8 September 2011)

Financial Strength

🇵🇾 Paraguay’s fiscal depth, reserves and the capacity to act

Inflation Rate (consumer Prices)·2013
2.3%
Public Debt·2013
15.7%GDP
Taxes and Other Revenues·2013
18.9%GDP
Reserves of Foreign Exchange and Gold·2013
$6.3B
Debt - External·2013
$7B

FiscalBack to top ↑

Budget
revenues:$5.788 billion
expenditures:$6.287 billion (2013 est.)
Taxes and other revenues

18.9% of GDP (2013 est.)

Budget surplus (+) or deficit (-)

-1.6% of GDP (2013 est.)

Public debt

15.7% of GDP (2013 est.)//14.7% of GDP (2012 est.)

Monetary and externalBack to top ↑

Inflation rate (consumer prices)

2.3% (2013 est.)//3.7% (2012 est.)

Reserves of foreign exchange and gold

$6.336 billion (31 December 2013 est.)//$4.994 billion (31 December 2012 est.)

Debt — external

$7.013 billion (31 December 2013 est.)//$5.985 billion (31 December 2012 est.)

Exchange rates

guarani (PYG) per US dollar -//4,315.1 (2013 est.)//4,424.9 (2012 est.)//4,735.5 (2010 est.)//4,965.4 (2009)//4,337.7 (2008)

Production and Innovation

🇵🇾 Paraguay’s output, industry and the engine of prosperity

Real GDP (purchasing Power Parity)
—
Real GDP Growth Rate
—
Real GDP per Capita
—
GDP (official Exchange Rate)·2013
$30.6B
Labor Force·2013
3.2M

OutputBack to top ↑

GDP (official exchange rate)

$30.56 billion (2013 est.)

GDP composition, by sector of origin
agriculture:20.4%
industry:17.7%
services:61.9% (2013 est.)
GDP composition, by end use
household consumption:67.1%
government consumption:12.8%
investment in fixed capital:16.9%
investment in inventories:0.4%
exports of goods and services:52.1%
imports of goods and services:-49.4%; (2013 est.)

Sectors and industryBack to top ↑

Industries

sugar, cement, textiles, beverages, wood products, steel, base metals, electric power

Industrial production growth rate

5.6% (2013 est.)

LabourBack to top ↑

Labour force

3.19 million (2013 est.)

Unemployment rate

6.6% (2013 est.)//6.9% (2012 est.)

OtherBack to top ↑

Economy - overview

Landlocked Paraguay has a market economy distinguished by a large informal sector, featuring re-export of imported consumer goods to neighboring countries, as well as the activities of thousands of microenterprises and urban street vendors. A large percentage of the population, especially in rural areas, derives its living from agricultural activity, often on a subsistence basis. Because of the importance of the informal sector, accurate economic measures are difficult to obtain. On a per capita basis, real income has stagnated at 1980 levels. The economy grew rapidly between 2003 and 2008 as growing world demand for commodities combined with high prices and favorable weather to support Paraguay's commodity-based export expansion. Paraguay is the sixth largest soy producer in the world. Drought hit in 2008, reducing agricultural exports and slowing the economy even before the onset of the global recession. The economy fell 3.8% in 2009, as lower world demand and commodity prices caused exports to contract. The government reacted by introducing fiscal and monetary stimulus packages. Growth resumed at a 13% level in 2010, the highest in South America, but slowed in 2011-12 as the stimulus subsided and severe drought and outbreaks of foot-and-mouth disease led to a drop in beef and other agricultural exports. The economy took another leap in 2013, largely due to strong export growth. Political uncertainty, corruption, limited progress on structural reform, and deficient infrastructure are the main obstacles to long-term growth.

GDP (purchasing power parity)

$45.9 billion (2013 est.)//$40.98 billion (2012 est.)//$41.49 billion (2011 est.)

data are in 2013 US dollars
GDP - real growth rate

12% (2013 est.)//-1.2% (2012 est.)//4.3% (2011 est.)

GDP - per capita (PPP)

$6,800 (2013 est.)//$6,100 (2012 est.)//$6,300 (2011 est.)

data are in 2013 US dollars
Agriculture - products

cotton, sugarcane, soybeans, corn, wheat, tobacco, cassava (manioc, tapioca), fruits, vegetables; beef, pork, eggs, milk; timber

Labor force - by occupation
agriculture:26.5%
industry:18.5%
services:55% (2008)
Distribution of family income - Gini index

53.2 (2009)//57.7 (1998)

Fiscal year

calendar year

Central bank discount rate

5.5% (31 December 2012 est.)//6% (31 December 2011 est.)

Commercial bank prime lending rate

28.9% (31 December 2013 est.)//29.1% (31 December 2012 est.)

Stock of narrow money

$4.364 billion (31 December 2013 est.)//$4.135 billion (31 December 2012 est.)

Stock of broad money

$8.215 billion (31 December 2013 est.)//$7.637 billion (31 December 2012 est.)

Stock of domestic credit

$11 billion (31 December 2013 est.)//$9.747 billion (31 December 2012 est.)

Market value of publicly traded shares

$962.3 million (31 December 2012 est.)//$958.1 million (31 December 2011)//$NA (31 December 2010 est.)

Stock of direct foreign investment - at home

$4.526 billion (31 December 2013 est.)//$4.145 billion (31 December 2012 est.)

Stock of direct foreign investment - abroad

$213.6 million (31 December 2013 est.)//$213.6 million (31 December 2012 est.)

Trade and Investment

🇵🇾 Paraguay’s markets, capital and the terms of global exchange

Exports·2013
$14.7B
Imports·2013
$12.4B
Current Account Balance·2013
$1.4B
Remittances
—
Exchange Rates·2013
guarani

External balanceBack to top ↑

Current account balance

$1.376 billion (2013 est.)//$115.6 million (2012 est.)

ExportsBack to top ↑

Exports

$14.7 billion (2013 est.)//$11.9 billion (2012 est.)

Exports — partners

Uruguay 17.7%, Brazil 16.4%, Argentina 15.6%, Russia 12% (2012)

Exports — commodities

soybeans, feed, cotton, meat, edible oils, wood, leather

ImportsBack to top ↑

Imports

$12.37 billion (2013 est.)//$11.06 billion (2012 est.)

Imports — partners

Brazil 24.2%, China 19.5%, Argentina 18.3%, US 11.5% (2012)

Imports — commodities

road vehicles, consumer goods, tobacco, petroleum products, electrical machinery, tractors, chemicals, vehicle parts

Contents

GINC Indices
Foundations
Capability Domains