Paraguay

At the Paraguay Investment Forum in New York, the President's Office and J.P. Morgan Natural Capital announced a forestry platform worth about US$200 million that will process timber locally for domestic and export markets. Money is expected to start flowing in early 2027, which could create supplier and logistics opportunities in the timber value chain.

PR Newswire (joint announcement) · 2026-09-24

Atome, a London AIM-listed company planning a green-hydrogen fertiliser plant at Villeta that the president values at more than US$600 million, served notice of a possible arbitration claim under the UK-Paraguay investment treaty. It then pulled out of its power deal after the government revoked the presidential decrees that guaranteed its electricity price. Both sides say a new contract is still possible, but the case shows that incentives granted by decree can be reversed.

The Rio Times (citing La Tribuna) · 2026-10-04

President Peña renewed his push for a new energy ministry and a power regulator, conceding that Paraguay has no legal framework for large power-supply contracts. Until such a framework passes, companies that use a lot of electricity, such as data centres, hydrogen producers and industrial plants, will keep negotiating their contract terms one by one, and those terms can be challenged politically.

The Rio Times (citing La Tribuna, Última Hora) · 2026-10-04

The US State Department's 2026 Investment Climate Statement confirms that foreign investors get national treatment and can repatriate capital and profits in full, and that the maquila export regime remains in place. It also reports that US firms often run into adverse procurement awards, legal disputes lasting several years, late or missing payments from government customers, and opaque permitting.

U.S. Department of State · 2026-09-30

Annual inflation was 1.7% in September, up from 1.5% in August and well below the central bank's 3.5% target, with core inflation at 1.2%. The guaraní traded at about 5,850 per US dollar on 1 October, against about 7,000 a year earlier, which keeps imports cheap but makes operating in Paraguay more expensive for companies paying costs from dollar budgets.

The Rio Times (citing Banco Central del Paraguay) · 2026-10-02

On 22 September the central bank's Monetary Policy Committee held the policy rate at 5.50%, where it has been since February, and called its stance neutral. It named oil-product prices and the Middle East conflict as the main outside risks, so borrowing costs in guaraníes look likely to stay where they are for now.

La Nación (Paraguay) · 2026-09-22

Congress has started reviewing the 2027 national budget. It totals about US$25.7 billion, 11.2% more than the approved 2026 budget, and projects a deficit of 3.9% of GDP, partly financed by sovereign bond issues. Local commentators have criticised the reliance on borrowing to pay off past arrears, including debts owed to Health Ministry suppliers, which is relevant for firms that sell to the state.

La República (with MEF filing) · 2026-09-09

In the 4 October municipal elections, preliminary counts show the ruling Colorado Party won a record 187 of 263 mayoralties. It lost Asunción to opposition candidate Soledad Núñez and failed to win Ciudad del Este. The party's majorities in Congress are unaffected, but entrants dealing with city permits in the two largest commercial centres will now work with opposition administrations.

La Nación (Paraguay) · 2026-10-04

Núñez won Asunción by about 5,000 votes and the Colorado candidate conceded on 5 October. The vote passed off without major security incidents, with around 38,000 police deployed, and electoral tribunals still have to formally proclaim the results. The outcome is an early test of the Colorado Party's position ahead of the 2028 presidential election.

ABC Color (EFE) · 2026-10-05

The state power utility ANDE has an annual investment shortfall approaching US$600 million, according to participants in a government energy roundtable. Although the country has abundant hydropower, weak transmission and distribution investment is a practical constraint on where large industrial users can connect, and how fast.

The Rio Times (citing Última Hora) · 2026-10-04