Paraguay confident of 4.2% growth in 2026 due to "stability scenarios"

Paraguay's Economy and Finance Minister Óscar Lovera expressed optimism about the country's economic prospects, projecting a 4.2% growth for 2026.

Despite global challenges like the Middle East crisis affecting oil prices, Lovera emphasized Paraguay's "scenarios of stability." He pointed to a controlled inflation policy, an independent central bank, and political stability as crucial factors mitigating external shocks. The minister also noted that the dollar's devaluation against the Paraguayan guaraní partially offsets the impact of rising oil import costs.

Lovera further highlighted Paraguay's competitive advantages, including an abundance of 100% renewable electricity from hydroelectric power and favorable tax conditions. He recalled that the country's GDP grew by 6.6% last year, significantly outpacing the South American average. The minister also anticipates increased trade volume following the recent EU-Mercosur agreement, particularly for exports like meat, soy, and agricultural products, though internal discussions on export quotas are ongoing.

Looking ahead, Lovera stated Paraguay's ambition to become an OECD candidate country, a goal he believes could be achieved in four to five years. This aspiration is supported by reforms under the "Paraguay 2050" National Development Plan, aimed at meeting global standards. A memorandum of understanding with the OECD is already in place to identify development gaps and pave the way for potential membership in the organization.