Cepal moderates growth projection for Paraguay

Paraguay's economic growth is projected to slow slightly this year, according to the latest forecast from the Economic Commission for Latin America and the Caribbean (ECLAC). The organization has revised its growth estimate for the country to 4.3% for 2026, down from a previous projection of 4.5%. Looking ahead to 2027, ECLAC anticipates a further moderation in growth, settling around 4%.

This adjustment comes within a broader regional context where ECLAC observes a prolonged period of modest economic performance. The commission highlights that Latin America and the Caribbean are emerging from what it terms a "second lost decade" (2014-2023), characterized by persistent challenges in translating economic growth into meaningful development. Informality and low productivity are identified as key factors hindering the region's progress.

While the revised forecast indicates a slight deceleration compared to 2025's estimated 6% growth, Paraguay is still expected to outperform many of its regional peers. The ECLAC report attributes Paraguay's economic dynamism primarily to its agricultural sector, which plays a significant role in the country's production and exports. However, this reliance on agriculture also exposes the economy to inherent vulnerabilities.

Globally, ECLAC forecasts Latin America and the Caribbean to grow by 2.2% in 2026, contrasting with an anticipated 2.9% expansion for the world economy. The report identifies Venezuela, Nicaragua, and Panama as economies expected to grow faster than Paraguay in the current year. On the currency front, Paraguay's guarani has seen appreciation against the dollar, attributed to increased foreign exchange inflows from agricultural exports.