AGP Executive Report

Investment Interest: JPMorgan’s Southern Cone chief says Paraguay’s stability and hydropower are attracting investors, with energy, forestry and infrastructure among the opportunities highlighted at a New York forum. Growth Outlook: The World Bank expects Paraguay to keep outpacing Latin America’s projected 2.2% growth in 2026, citing fiscal consolidation and private investment. Digital Infrastructure: HIVE plans a 400-megawatt hydro-powered campus in Paraguay, potentially adding to demand for the country’s renewable electricity. Investor Risks: Fitch maintained Paraguay’s BB+ rating with a positive outlook, while ATOME warned it may seek high-nine-figure damages over its Villeta dispute. Trade and Diplomacy: Paraguay’s ties with Taiwan face growing pressure from China’s economic pull, while farm exporters lack the direct access to China enjoyed by Mercosur neighbors.

Growth Outlook: The World Bank says Paraguay is outperforming Latin America’s 2.2% growth pace, citing fiscal consolidation, improved security and strong private investment. Digital Investment: HIVE plans to add 100 MW at its Yguazú campus, taking capacity to 400 MW, with an AI facility planned for 2027. The company has committed more than $400 million to its Paraguay operations. Credit Standing: Fitch kept Paraguay at BB+ with a positive outlook, but the country still faces seven hurdles to investment grade. Trade Watch: French farmers protested the EU-Mercosur deal, while President Emmanuel Macron said France would oppose it ahead of a key vote, adding uncertainty for Paraguay’s trade ambitions. Tourism: Paraguay is set to host a round of the 2027 World Rally Championship, bringing an international event with potential benefits for local businesses.

Growth: The World Bank projects Paraguay’s economy will expand 4.7% in 2026, outpacing the regional forecast of 2.2% on the back of robust private investment and sound macroeconomic policies. Community Investment: Japan committed about US$300,000 for water, school and road projects in Cordillera and Central, including a system expected to provide reliable drinking water to 4,000 people. Digital Infrastructure: HIVE plans to add 100 MW at its hydro-powered Yguazú campus, bringing capacity to 400 MW, with completion targeted for the third quarter of 2026. Currency: The Central Bank unveiled redesigned guaraní notes, to be introduced gradually alongside current bills. Credit Outlook: Fitch kept Paraguay at BB+ with a positive outlook, while the country remains below investment grade. Transport: Paraguay’s road network exceeds 78,000 kilometres, but 84% remains unpaved.

Digital Infrastructure: HIVE plans to add 100 MW at its Yguazú data-center campus, taking capacity to 400 MW powered by Itaipú hydroelectricity. The company says it has committed more than US$400 million to Paraguay and is also planning an AI facility. Growth Outlook: The World Bank projects Paraguay’s economy will expand 4.7% in 2026, outpacing the region’s 2.2% forecast, with private investment among the supports. Currency: The Central Bank has unveiled redesigned guaraní banknotes in existing denominations; the new notes will enter circulation gradually alongside current ones. Credit and Infrastructure: Fitch affirmed Paraguay’s BB+ rating with a positive outlook, while noting seven hurdles to investment grade. Separately, the country’s road network exceeds 78,000 kilometres, but 84% remains unpaved. Investment: Asunción’s planned university district is targeting US$200 million in investment and 5,000 foreign students.

Growth Outlook: The World Bank expects Latin America and the Caribbean to grow 2.2% in 2026 and identifies Paraguay as an above-average performer, citing fiscal consolidation and private investment. Trade & Exports: South Korea will train Paraguayan food-safety officials and brief Korean companies on export requirements, aiming to strengthen food trade with the region. Credit Rating: Fitch affirmed Paraguay at BB+ with a positive outlook, one notch below investment grade. It cited 6.6% growth in 2025, low public debt and a 4.5% growth forecast for 2026. Infrastructure: Paraguay’s road network spans nearly 78,800 kilometres, but only 16% is paved or improved, a major constraint on connectivity and getting goods to market. Currency: The central bank unveiled redesigned guaraní notes, due to enter circulation gradually from early 2027; existing notes will remain valid.

Credit Upgrade Watch: Fitch kept Paraguay at BB+ with a positive outlook, citing strong growth, lower public debt (31.7% of GDP in 2025) and falling inflation, while flagging seven steps toward investment grade. Infrastructure Reality Check: Paraguay’s road inventory totals 78,795 km, but only 12,912 km are paved or improved—about 16%—leaving 84% unpaved and raising pressure on connectivity and logistics. Currency Update: The central bank unveiled a redesigned Guaraní banknote family (₲2,000 to ₲100,000) with new security features and themes; rollout starts in Q1 2027, with older notes still valid. Tech & Research: A Paraguayan-led AI team won a Best Paper award in South Korea for trademark classification work tied to an AI-assisted platform for DINAPI. Food Safety & Exports: South Korea will host 32 food safety officials from eight Latin American countries including Paraguay to strengthen import safeguards and support Korean food exports to the region. Regional Macro: The World Bank projects Latin America growth at 2.2% in 2026, highlighting Paraguay as an outperformer.

Credit Watch: Fitch kept Paraguay at BB+ with a positive outlook, citing strong growth, low public debt and falling inflation, while flagging seven factors to reach investment grade. Infrastructure Reality Check: Paraguay’s road inventory totals 78,795 km, but only 12,912 km are paved or improved (about 16%), leaving 84% as unpaved tracks that still shape access to markets and services. Currency Update: The central bank unveiled a redesigned guaraní banknote family (₲2,000 to ₲100,000) with new security features and themes; rollout starts in Q1 2027 and old notes stay valid. Regional Security: The US and nine Americas partners issued a joint statement condemning Iran-linked “terrorist activities,” with Paraguay among signatories. AI & Research: HIVE ran large-language-model pre-training using GPUs in Asunción for Columbia University researchers in New York via a 5,000-mile fiber link. Business & Events: SAGSE LATAM mapped its 2027 roadmap, with Paraguay set to host SAGSE Paraguay (Aug 4–6, 2027) in Ciudad del Este. Diplomacy/Trade: Taiwan’s allies include Paraguay, with renewed attention on regional support at the UN.

Asunción Politics: Civil engineer Soledad Núñez won Asunción’s municipal election, beating the Colorado Party candidate with about 47.8% of the vote vs. 46%, a shift that could reshape the capital’s economic and political direction. Tech & Research: HIVE Digital Technologies ran large language model pre-training from its GPU cluster in Asunción, with Columbia researchers operating remotely from New York via fiber links—an example of Paraguay exporting compute capacity. Innovation for IP: A Paraguayan-led AI team won a Best Paper award in South Korea for trademark classification research tied to an AI-assisted DINAPI platform funded by KOICA (US$80,000, through March 2027). Tourism & Investment: Universidad Central del Paraguay is pushing a US$200M “University District” plan in Asunción’s historic center, targeting 5,000 foreign students over five years. Culture & Business: Paraguay will host the 7th Latin American Folklore Gathering (Oct 6–11) with ~750 international participants, plus Empanada Day highlights the snack’s growing commercial weight. Regional Trade Context: A new EU–Mercosur trade framework is being discussed as a way to set standards while balancing market access with environmental protection.

Municipal Power Shift in Asunción: Civil engineer Soledad Núñez won Asunción’s mayoral race for the opposition “Together for Asunción” coalition, beating the Colorado Party candidate with about 47.8% vs 46% in preliminary results—an early signal of political change in Paraguay’s key economic hub. AI for IP Modernization: A Paraguayan-led team won a Best Paper Award in South Korea for AI that improves classification of trademark figurative elements, feeding into an AI-assisted DINAPI platform funded by KOICA (US$80,000) through March 2027. Higher-Ed Investment Push: Universidad Central del Paraguay is backing a University District in Asunción’s historic center, targeting about US$200M in investment over five years and roughly 5,000 foreign students to revive the area’s economy. Trade & Environment Angle: Coverage highlights how EU–Mercosur bilateral trade talks could shape future deals, with environmental safeguards—especially around forests—still a major sticking point. Sports & Tourism Calendar: Paraguay’s Encarnación will host Ironman 70.3 on 11 October, while Paraguay also prepares for major cultural events like the 7th Latin American Folklore Gathering (6–11 October).

EU–Mercosur Trade Watch: The EU’s interim deal with Mercosur—provisionally applied since May 2026—could set the template for new trade talks, but environmental safeguards remain a sticking point as studies link trade deals to higher deforestation. EU–Mercosur Legal Pressure: A fresh dispute over EU antimicrobial rules has Brussels suspending imports of Brazilian animal products, adding legal and political uncertainty for exporters while court challenges over the deal’s provisional application continue. Paraguay Growth Update: Paraguay heads into Q4 2026 after 5.7% GDP growth in the first half, led by agriculture, with momentum slowing from 7.3% in Q1 to 4.0% in Q2. Food Security Drive: Banco de Alimentos Paraguay will run a national food drive on 3 October, aiming to collect 40 tonnes with 1,000+ volunteers across dozens of collection points. Digital Dependence Test: A new piece highlights how a 24-hour internet outage would disrupt everyday life in Paraguay, where 85.4% of people aged 10+ went online in 2025. Regional Climate Tech: Research on Southern Cone livestock systems suggests technology could cut emissions in the Salado Basin by 15%, offering a model for lower-impact meat production.

Paraguay Economy: Paraguay ended the first half of 2026 with South America’s fastest growth, with GDP up 5.7% in the semester (BCP), led by agriculture (+12.3%) and supported by services, energy and construction, though momentum cooled from 7.3% y/y in Q1 to 4.0% in Q2. Food & Social Impact: Banco de Alimentos Paraguay will run its 2026 National Food Drive on Oct. 3, aiming to collect 40 tonnes of non-perishables with 1,000+ volunteers across 70+ collection points in Asunción and the interior. Digital Resilience: A new explainer asks what happens if Paraguay loses internet for 24 hours, pointing to how deeply daily life now depends on online banking, payments and logistics. Trade & Growth Context: Paraguay’s wider regional trade backdrop includes EU-Mercosur legal uncertainty and disputes over animal-product compliance, adding risk for exporters across the bloc. Culture & Tourism: Paraguay will host the 7th Latin American Folklore Gathering Oct. 6-11 in San Lorenzo, Asunción and Fernando de la Mora, with free public performances and artists from 13 countries. Sports & Events: Encarnación will host Ironman 70.3 on Oct. 11, bringing international endurance athletes to the Itapúa region.

Paraguay Economy: Paraguay ended the first half of 2026 with South America’s fastest growth, with GDP up 5.7% (BCP), led by agriculture (+12.3%), plus strength in services, energy and construction, though momentum cooled from 7.3% year-on-year in Q1 to 4.0% in Q2. Food Security & Social Impact: Banco de Alimentos Paraguay will run its 2026 National Food Drive on Oct. 3, aiming to collect 40 tonnes of non-perishables with 1,000+ volunteers across supermarkets in Asunción, Greater Asunción and multiple interior cities. Digital Resilience: A new explainer looks at how daily life in Paraguay would be disrupted if internet went down for 24 hours, citing near-universal online access (INE: 85.4% of people aged 10+ online in 2025). Sports & Business Visibility: Paraguay beat Colombia 1-0 in an international friendly in New Jersey, with Hugo Benítez scoring, keeping Paraguay in the spotlight ahead of major regional competitions.

Paraguay Economy: Paraguay ended the first half of 2026 with South America’s fastest growth, with GDP up 5.7% year-on-year, led by agriculture (up 12.3%) and supported by services, energy and construction, though momentum cooled from 7.3% in Q1 to 4.0% in Q2. Food Security: Banco de Alimentos Paraguay kicks off its 2026 National Food Drive on Saturday, aiming to collect 40 tonnes of non-perishable food with 1,000+ volunteers across dozens of collection points nationwide. Digital Resilience: A new Paraguay-focused explainer runs a “what if” scenario on losing internet for 24 hours, highlighting how deeply daily life now depends on online banking, payments and QR services. Trade & Integration: Paraguay is in the wider MERCOSUR orbit as India and the bloc move to broaden their preferential trade deal, with services and critical minerals on the agenda. Crime-Finance Watch: A regional analysis on anti-money-laundering shifts attention from arresting kingpins to tracing criminal financial structures, including references to Paraguay-linked cases in the Tri-Border Area. Culture & Heritage: Paraguay’s Cinematheque Foundation completed conservation of rare Chaco War audiovisual records, including a 1932 nitrate documentary, to protect national historical memory.

Paraguay Economy: Paraguay closed Q3 momentum and entered Q4 2026 with South America’s fastest first-half growth, as GDP rose 5.7% in the first six months (BCP), led by agriculture (up 12.3%) though growth cooled from 7.3% y/y in Q1 to 4.0% in Q2. Food Security & Social Impact: Banco de Alimentos Paraguay launched its 2026 National Food Drive on Oct. 3, targeting 40 tonnes of non-perishables with 1,000+ volunteers across more than 70 collection points nationwide. Digital Resilience: A new explainer asks what a 24-hour internet outage would mean in Paraguay, noting 85.4% of people aged 10+ went online in 2025—turning connectivity into a daily-life utility. Trade & Investment Links: India and MERCOSUR are pushing to broaden their preferential trade agreement, with talks aimed at adding services and a special framework for critical minerals—covering Paraguay among the bloc members. Sustainable Procurement: Paraguay’s DNCP improved tracking of sustainable public procurement by adding sustainability clauses into e-GP and using dashboard indicators, identifying 10,000+ sustainability clauses in two years. Aviation & Emergency Response: The Paraguayan Air Force acquired a multi-purpose Cessna 408 SkyCourier, financed by Itaipú Binacional, to support medevac and humanitarian logistics.

Paraguay Economy: Paraguay ended the first half of 2026 with South America’s fastest growth, with GDP up 5.7% (BCP), led by agriculture (+12.3%) and supported by services, energy and construction—though momentum cooled from 7.3% y/y in Q1 to 4.0% in Q2. Digital Resilience: A new explainer asks what a 24-hour internet outage would do in Paraguay, noting 85.4% of people aged 10+ went online in 2025, making connectivity a daily utility rather than a luxury. Food Security: Banco de Alimentos Paraguay will run its 2026 National Food Drive on Oct. 3, aiming to collect 40 tonnes of non-perishable food with 1,000+ volunteers across more than 70 collection points. Public Procurement Sustainability: Paraguay’s DNCP improved tracking of sustainable public procurement via structured data in e-GP, identifying 10,000+ sustainability clauses over two years. Aviation & Emergency Response: The Paraguayan Air Force acquired a multi-purpose Cessna 408 SkyCourier, financed by Itaipú Binacional, to expand medevac and emergency logistics. Municipal Elections: Paraguay’s Oct. 4 municipal elections bring nationwide alcohol sales restrictions from 19:00 on Oct. 3, plus rules around campaigning and polling-day activities.

Shield of the Americas: Paraguay joined 14 other governments backing Bolivia’s crackdown on drug trafficking and corruption after the arrest of Attorney General Róger Mariaca, urging La Paz to keep investigations active and bring alleged networks to court. Paraguay Elections 2026: Municipal elections are set for Sunday, Oct. 4, with alcohol sales banned nationwide from 19:00 Saturday and campaign rules ending at 23:59 Thursday. Weather & Risk: Paraguay recorded a new 74-year temperature high, with Mariscal Estigarribia reaching 43.8°C, as a heatwave broke records across more than a dozen localities. Sustainable Procurement: Paraguay’s DNCP improved tracking of sustainable public procurement by embedding sustainability clauses into e-GP and building an internal dashboard, identifying 10,000+ sustainability clauses in two years. Aviation & Emergency Response: The Paraguayan Air Force acquired a multi-purpose Cessna 408 SkyCourier, financed by Itaipú Binacional, to support medevac and humanitarian logistics. Trade & Investment: Nexalin Technology signed a definitive distribution and local manufacturing agreement for its Nexalin Sync device across Brazil, Argentina, Chile, Uruguay, Paraguay, Ecuador and Venezuela. Climate Outlook: UNICEF warned 25.8 million children across Latin America and the Caribbean face very high El Niño-related risks.