Paraguay profile

Demography and Health

Paraguay’s population was about 6.93 million in 2024, placing it around the middle of regional cohorts. The country shows a relatively young demographic profile with a crude birth rate of 20 per 1,000 people (2023) and a crude death rate of 5.7 per 1,000, contributing to a life expectancy at birth of 73.8 years (2023). The under-5 mortality rate stands at 17 per 1,000 live births (2023), signaling ongoing challenges in child health that may benefit from targeted health investment and preventive care. Health spending is moderate, with current health expenditure at about 7.74% of GDP (2022) and per-capita health expenditure (PPP) around 658 international dollars, suggesting a mix of public and private financing in healthcare delivery. Paraguay also maintains a physician density of about 3.88 per 1,000 people (2022), reflecting a reasonably available medical workforce but one that could be strained in rural areas. Social indicators reveal a poverty headcount around 24.7% at national poverty lines (2022) and undernourishment affecting roughly 4.5% of the population (2022), underscoring persistent development gaps even as incomes rise. On the social horizon, net migration turned negative in 2024, with about 12,451 people leaving, indicating a potential drain of skilled labor and a need to improve opportunities and living standards to retain talent. Internet penetration is relatively high at 78.1% (2023), signaling substantial digital connectivity that could be leveraged for health information, telemedicine, and education. Overall, health and demography reveal a nation with improving health outcomes and infrastructure but with notable pockets of poverty and out-migration that can influence demographic dynamics over time. Governance indicators related to security and institutions are mixed, which can affect the reliability of public health programs and long-term planning.

Economy

Paraguay’s nominal GDP per capita sits at about 6,416 US dollars in 2024, with a Purchasing Power Parity (PPP) per capita of roughly 18,524 international dollars, signaling a middle-income profile with substantial differences between market prices and living costs. Economic activity is moderately open, with exports of goods and services accounting for about 37.2% of GDP (2024) and imports representing around 39.6% of GDP (2024), indicating a fairly integrated but not oversized trade footprint. Inflation stands at 3.84% in 2024, suggesting reasonable price stability relative to many peers. The unemployment rate is 5.79% (2023), which points to a relatively manageable labor market, though informal employment and regional disparities may temper the official figure. The economy shows signs of productivity and investment challenges as reflected in modest research and development expenditure at about 0.119% of GDP (2022) and a high-technology exports value of around 185.6 million US dollars (2024), ranking fairly high on a per-country basis but still representing a small absolute share of output. Poverty remains a meaningful constraint, with 24.7% of the population below national poverty lines (2022), indicating ongoing needs for inclusive growth and social protection. The current account balance is negative at about -3.75% of GDP (2024), signaling a reliance on external financing or funding for imports and investment. Taken together, these indicators depict a country with steady growth prospects, an open trade stance, and important social challenges that require policy focus on productivity, investment climate, and inclusive development.

Trade and Investment

Paraguay demonstrates a diverse but modestly export-oriented economy. Exports of goods and services account for 37.2% of GDP (2024), while imports represent about 39.6% of GDP (2024), underscoring a relatively open trade regime with balanced import-export activity. Foreign direct investment net inflows stand at 0.9% of GDP (2024), indicating a gradual but cautious investment climate that may reflect governance, regulatory quality, and risk perceptions. The country records a notable value of high-technology exports at approximately 185.6 million US dollars (2024), with a rank position of 19, suggesting a meaningful but still evolving niche in advanced manufacturing or tech-enabled sectors for a country of Paraguay’s size. The current account is in deficit by about 3.75% of GDP (2024), which could reflect investment dynamics or commodity cycles, and the economy appears to benefit from some infusion of capital but remains vulnerable to external shocks. The region’s connectivity is aided by an average Logistics Performance Index of 2.5 (2022), signaling that while trade logistics are functional, there is room for improvement in infrastructure, efficiency, and border/port operations to support greater export competitiveness. Overall, Paraguay shows potential in high-tech exports and openness to trade, but sustained growth will depend on improving regulatory quality, governance, and the investment climate to attract higher levels of FDI and integration into global value chains.

Governance and Institutions

Paraguay’s governance landscape presents a mix of stability and governance gaps. The Political Stability and Absence of Violence/Terrorism indicator for 2023 stands at 0.082, suggesting a modest level of political stability but not a strong sense of security or resilience to shocks. Regulatory Quality is negative at -0.0789, indicating weaknesses in policy formulation and implementation that can hinder business confidence and public sector effectiveness. The Rule of Law indicator is notably negative at -0.582, signaling challenges in legal predictability, property rights, and judicial effectiveness. Control of Corruption trails at -1.06, highlighting perceived corruption challenges that can impede investment, public service delivery, and governance reforms. Government Effectiveness, at -0.462, further underscores limited public sector capacity to execute policy and deliver services efficiently. These indicators collectively point to a governance environment that, while not absent of institutions, struggles with credibility, rule enforcement, and institutional reform. To harness investment and improve social outcomes, Paraguay would benefit from targeted reforms to strengthen institutions, improve transparency, and enhance the predictability of regulatory and legal processes—areas critical for business confidence, rule of law, and sustainable development. In addition, patents on residents amount to 10 (2021), reflecting a nascent but present innovation ecosystem, which, if nurtured, could support domestic capacity-building and knowledge-intensive sectors over time.

Infrastructure and Technology

Paraguay’s infrastructure and technology profile shows a combination of strengths and gaps. The Logistics Performance Index score of 2.5 (2022) indicates moderate efficiency in trade and transport-related infrastructure, suggesting logistical constraints in areas such as customs, transport networks, or border efficiency that can raise trade costs. Internet usage is high, with about 78.1% of the population connected in 2023, offering strong potential for digital adoption, e-government, and e-health services. The health and education infrastructure appears reasonably developed but unevenly distributed, as indicated by a physician density of 3.88 per 1,000 people (2022) and current health expenditure of 7.74% of GDP (2022). Per-capita health expenditure (PPP) is around 658 international dollars, highlighting a relatively modest level of health financing per person. Paraguay’s R&D intensity remains low, at 0.119% of GDP (2022), implying ample room to boost innovation capacity through public investment, private sector collaboration, and higher education. Renewable energy consumption constitutes a sizable 58.8% of total final energy consumption (2021), pointing toward a substantial role of clean energy in the energy mix, which could support energy security and emissions goals. The country’s total greenhouse gas emissions per capita stand at 6.08 t CO2e (2023), with further potential to reduce emissions through energy efficiency and technological upgrades. The ability to translate digital connectivity and energy reliability into productivity gains, particularly in rural areas and manufacturing, will be key to unlocking more sophisticated sectors and diversified growth.

Environment and Sustainability

Paraguay presents a relatively favorable environmental profile in some respects but also shows pressures typical of developing economies. Total greenhouse gas emissions excluding LULUCF per capita are about 6.08 t CO2e, ranking mid-pack globally, which suggests room to improve energy efficiency and decarbonize electricity generation further. The country relies heavily on renewable energy, with 58.8% of total final energy consumption coming from renewable sources as of 2021, indicating a strong potential for low-carbon development and resilience against fossil fuel price volatility. Water resource stress is indicated by a level of freshwater withdrawal to available resources at 1.84 (2021), implying moderate water stress that could intensify with changing rainfall patterns and agricultural demand. The data offer a mixed picture: Paraguay benefits from a relatively clean energy base and a stable policy environment for energy, yet faces environmental vulnerabilities tied to water resources and climate resilience. Ongoing investment in renewable energy, efficiency improvements, and sustainable land and water management will be crucial to maintain low-carbon growth while supporting population well-being and agricultural productivity. Continuous monitoring of emissions, water resources, and ecosystem health will help Paraguay balance development with environmental stewardship in a changing global context.