Economic Outlook for Entrepreneurs in Paraguay

Published on September 30, 2025 and written by Cyril Jarnias

Paraguay, a landlocked country in the heart of South America, offers growing opportunities for bold entrepreneurs. With a rapidly changing economy and government policies favorable to investment, Paraguay is positioning itself as an attractive destination for entrepreneurs seeking new markets. Let’s explore together the promising economic prospects available to entrepreneurs in this booming country.

Economic Dynamism Driving Opportunities

Paraguay has experienced sustained economic growth for several years, making it one of the most dynamic economies in Latin America. According to the latest projections from the International Monetary Fund, Paraguay’s GDP is expected to grow by 4.5% in 2025, a rate significantly higher than the regional average. This robust growth is driven by several factors:

– A productive and diversified agriculture, particularly in soybean, beef, and dairy production – A rapidly developing industrial sector, especially in agribusiness and textiles – Massive investments in infrastructure, particularly in transportation and energy – Macroeconomic stability and controlled inflation

This economic momentum creates a favorable environment for entrepreneurs, with rising domestic demand and export opportunities to neighboring countries.

A Business-Friendly Regulatory Framework

The Paraguayan government has implemented a series of measures aimed at attracting foreign investment and stimulating entrepreneurship. Among the main initiatives are:

– Law 60/90 on investments, which offers attractive tax benefits for investment projects, including tax and customs duty exemptions – The maquila regime, allowing temporary duty-free import of raw materials and equipment for producing goods destined for export – The creation of industrial free zones offering favorable tax conditions – Simplified administrative procedures for business creation, including the establishment of a one-stop shop for investors

These measures have enabled Paraguay to significantly improve its ranking in the World Bank’s Doing Business report, moving from 113th place in 2015 to 75th place in 2025. This progress demonstrates the government’s efforts to create an environment conducive to business and entrepreneurship.

Emerging Sectors with High Potential

Several business sectors offer particularly promising prospects for entrepreneurs in Paraguay:

1. Renewable Energy: Paraguay has considerable potential in clean energy, particularly solar and biomass. The government has implemented tax incentives to encourage investments in this sector.

2. Information and Communication Technologies: The country is experiencing rapid digitalization of its economy, creating opportunities in software development, e-commerce, and digital services.

3. Agribusiness: Beyond traditional agricultural production, there is strong potential in agricultural product processing and precision agriculture.

4. Tourism: Still underdeveloped, the tourism sector offers numerous opportunities, particularly in ecotourism and business tourism.

5. Logistics Services: Paraguay’s strategic position at the heart of the South American continent makes it a natural logistics hub, with opportunities in river and land transport.

These sectors benefit from active government support and offer interesting growth prospects for innovative entrepreneurs.

Challenges and Opportunities: Navigating a Changing Market

Although economic prospects are generally positive, entrepreneurs should be aware of the inherent challenges in the Paraguayan market:

• Bureaucracy still exists, despite administrative simplification efforts
• A judicial system that can be slow and complex at times
• Developing infrastructure, but still insufficient in some regions
• Heavy dependence on the agricultural sector, making the economy vulnerable to climate fluctuations
• Competition from neighboring countries, particularly Brazil and Argentina

However, these challenges also come with significant opportunities:

• A market still unsaturated in many sectors, offering niches to exploit
• An expanding middle class, creating growing demand for quality goods and services
• Relatively low operating costs compared to neighboring countries
• Opportunities for partnerships with local companies seeking modernization and innovation

Entrepreneurs capable of identifying these opportunities and overcoming the challenges will be able to fully leverage the potential of the Paraguayan market.

2030 Horizon: A Promising Future for Entrepreneurship

Long-term prospects for the Paraguayan economy and entrepreneurship are encouraging. According to World Bank projections, Paraguay is expected to maintain average growth of 4% per year until 2030, supported by structural reforms and continued investments in infrastructure.

Several trends are expected to shape the business environment in the coming years:

– Increased regional economic integration, particularly within Mercosur, offering new export opportunities – Gradual diversification of the economy, reducing dependence on the agricultural sector – Focus on innovation and technology, with the development of innovation hubs and startups – Growing attention to sustainable development and the green economy, creating new niches for entrepreneurs

These trends should help strengthen Paraguay’s attractiveness for national and international entrepreneurs, making the country a prime destination for investments in South America.

In conclusion, Paraguay offers fertile ground for bold and innovative entrepreneurs. With a growing economy, favorable government policies, and emerging sectors with high potential, the country is positioning itself as an attractive destination for investors. Although challenges remain, long-term prospects are promising, making Paraguay a market to watch closely for entrepreneurs seeking new opportunities in Latin America.