Paraguay is fast becoming a hidden gem for savvy investors looking to diversify their portfolios. With its strategic location in the heart of South America, a stable economy and pro-business government policies, the country offers exciting opportunities across various sectors.
From agriculture, which remains the backbone of Paraguay’s economy, to rapidly growing industries like renewable energy and manufacturing, there’s plenty to pique investor interest. Additionally, Paraguay’s relatively low labour costs and growing infrastructure make it an appealing destination for both local and international capital.
The State of Paraguay’s Economy and Investment Landscape
As of 2025, Paraguay’s economy is experiencing robust growth, with a projected GDP expansion of 4.0% this year, according to AInvest. This positive trajectory is driven by a diversified economic base, including services, agriculture and construction sectors. The services sector now accounts for 60% of GDP, reflecting a shift towards a more balanced economic structure.
Inflation remains under control at 2.3%, and the central bank’s monetary policy aims to maintain stability, fostering a conducive environment for investment. The government’s commitment to infrastructure development is evident in significant projects like the expansion of the Yacyretá Dam and urban development initiatives in Asunción,
There’s no doubt about the fact that Paraguay’s investment landscape is increasingly attractive to foreign investors. The enactment of the Public-Private Partnership (PPP) Law in January 2025 streamlines infrastructure projects, offering extended contract terms and centralised oversight.
Also, the country is positioning itself as a hub for sustainable investments, with the EU-Paraguay Investment Forum focusing on sectors like renewable energy, green hydrogen and sustainable logistics. These developments underscore Paraguay’s strategic efforts to enhance its investment appeal and integrate into global sustainable development initiatives.
The Top 5 Industries for Investment in Paraguay
Here are the top five industries for investment in Paraguay in 2025.
Agriculture and Agribusiness
Agriculture has long been the cornerstone of Paraguay’s economy, and it continues to be a dominant force in the country’s investment landscape. The nation’s vast fertile land, coupled with a favourable climate, makes it an ideal location for the cultivation of soybeans, corn, wheat and other crops.
Paraguay is one of the world’s leading exporters of soybeans, and its beef industry is also globally recognised. Beyond traditional farming, there’s a growing emphasis on agribusiness ventures, including food processing, biofuel production and value-added agricultural products. The government’s support for sustainable agricultural practices and the development of agro-industrial infrastructure further enhances the sector’s attractiveness to investors.
Services and Information Technology
Paraguay’s services sector, particularly information technology (IT) and business process outsourcing (BPO), has seen rapid expansion in recent years. The capital city, Asunción, is emerging as a regional tech hub, with a growing number of startups and established companies offering software development, IT services and digital solutions.
The government’s focus on improving digital infrastructure and providing incentives for tech companies has fostered a conducive environment for innovation and entrepreneurship. Investors looking to tap into the digital economy will find Paraguay’s services sector a promising avenue for growth.
Renewable Energy
Paraguay is a global leader in renewable energy, primarily due to its extensive hydroelectric resources. The Itaipú Dam, shared with Brazil, is one of the largest hydroelectric power plants in the world, providing the country with an abundance of low-cost electricity.
This surplus energy presents opportunities for investment in energy-intensive industries and the development of renewable energy projects, such as solar and wind power. The government’s commitment to expanding renewable energy capacity and improving energy infrastructure makes this sector particularly appealing for investors seeking sustainable and profitable ventures.
Manufacturing and Light Industry
The manufacturing sector in Paraguay has experienced significant growth, driven by the country’s competitive labour costs and strategic location within the Mercosur trade bloc. Key industries include automotive assembly, textiles, food processing and electronics.
The Maquila regime, which offers tax incentives for export-oriented manufacturing, has attracted numerous multinational companies to establish operations in Paraguay. This sector not only contributes to job creation but also enhances the country’s position in regional and global supply chains, making it a compelling area for investment.
Infrastructure and Real Estate
As Paraguay continues to develop, there is a rising demand for infrastructure and real estate projects. The government’s investment in transportation networks, including roads, bridges and ports, is enhancing connectivity and facilitating trade.
Additionally, urbanisation and a growing middle class are driving the need for residential, commercial and industrial real estate developments. Public-private partnerships and favourable regulatory frameworks present opportunities for investors in the construction, logistics and property development sectors.
The ongoing infrastructure projects and urban expansion make this sector a key area for investment in Paraguay’s future growth.
