Ilustración conceptual original de Radar Inversión
Published October 8, 2026 · Updated October 21, 2026 · Radar Investment
The World Bank projects Paraguay's economy will grow 4.7% in 2026, above the regional average. The October Macro Poverty Outlook highlights domestic demand, investment and exports.
What changed
The World Bank puts real GDP growth at 4.7% for 2026, 4.1% for 2027 and 4.0% for 2028. This does not replace the Central Bank of Paraguay's 5.0% projection for 2026 in its September Monetary Policy Report; they are estimates from different institutions.
Investment and activity
Household consumption and broad-based investment, including construction, machinery, equipment and vehicles, were among the main drivers in the first half of 2026.
Fiscal front
The World Bank projects a central-government deficit of 3.3% of GDP in 2026 and public debt below 40% of GDP over the medium term.
What it means for investors
Growth close to 5% improves the aggregate outlook but does not guarantee equal performance across sectors. Demand, investment, exports, financing conditions and execution capacity remain decisive.
Radar view: the 4.7% projection reinforces Paraguay's position as an economy growing above the regional average. The key question is how much translates into executed investment, formal employment and productivity.
Figures are World Bank projections and not an independent Radar Investment forecast.
October 21, 2026 update: comparing forecasts
The BCP October EVE survey shows respondents' median expectations of 4.5% GDP growth for 2026 and 4.0% for 2027. These private expectations differ from the BCP's 5.0% official projection and the World Bank's 4.7% forecast covered in this report. Year-end 2026 inflation is expected at 3.0%, and the policy rate at 5.50% for October and November.
