Paraguay: Strong growth momentum, despite still-challenging external environment

​GDP growth above regional average

Paraguay is one of the poorest and most unequal economies of South America. 22.2% of the population lives below the national poverty line according to the World Bank.

The World Economic Forum competitiveness index ranks it 118th out of 140 in terms of quality of infrastructure. Paraguay’s structural vulnerabilities stem from a reliance on the agriculture sector. Hence it is exposed to commodity-price shocks and weather conditions.