Business · Economy · 1 day ago
Paraguay draws more visitors, residents and investment as industry expands
Paraguay is attracting more visitors and people looking to move there, with 47,600 residence applications recorded last year, 63% more than in 2024.
The country has built a reputation for economic stability after tightening fiscal policy, strengthening its central bank and controlling inflation.
Since taking office in 2023, President Santiago Peña has sought to make Paraguay an export-focused industrial hub by cutting red tape and expanding a scheme that gives qualifying manufacturers tax advantages.
Companies from Brazil and Argentina are moving some production to Paraguay, where costs and regulation can be lower, and exports of goods such as car parts and clothing have grown.
Manufacturing under the scheme still accounts for only 2.5% of GDP, while food makes up almost 70% of goods exports and one in five people lives below the poverty line.
A shortage of skilled workers is another hurdle, and public education spending is low compared with much of the region.
A planned trade agreement between Mercosur and the European Union is expected to give Paraguayan exporters a further boost.
Paraguay received 3.7 million international visitors last year, nearly double the number forecast for 2024.
Immigration authorities recorded a record 47,600 residence applications last year, up 63% from 2024.
President Santiago Peña is seeking to make the country an export-oriented industrial hub by easing procedures and expanding the maquila regime.
Exports of goods including auto parts, clothing and textiles were 25% higher last year than in 2019 in real terms, helping economic growth reach 6.6%.
Paraguay still relies heavily on agriculture, and one in five residents lives below the poverty line.
- Who
- Paraguay, including international visitors, new residents and companies investing or moving production there.
- What
- The country is attracting more visitors, residence applications and investment as its industrial sector expands.
- When
- Last year, according to the article; it was published on October 10, 2026.
- Where
- Paraguay, including its capital, Asunción.
- Why
- Economic stability, investment-grade ratings, simplified procedures and tax incentives for manufacturers have helped attract people and investment.
This story does not have two clearly opposing sides.
People did not used to come to Paraguay looking for opportunities.
Now they come.
Not stated
After the financial crisis, authorities adopted stricter fiscal policy, strengthened the central bank and controlled inflation.
Santiago Peña took office and pursued plans to make Paraguay an export-oriented industrial hub.
Paraguay received 3.7 million international visitors and recorded 47,600 residence applications.
- International visitors
- 3.7 million last year
- Residence applications
- 47,600 last year, up 63% from 2024
- Economic growth
- 6.6% last year
- Manufactured exports
- Up 25% in real terms compared with 2019
- Maquila exports
- 2.5% of GDP
- Poverty
- One in five Paraguayans lives below the poverty line
Sources
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