AGP Executive Report

Banking Oversight: Paraguay’s banking association has asked the Central Bank to disclose the solvency of lenders that received merger-related support, as senators press President Santiago Peña to replace the bank’s leadership. Digital Finance: Peanut is testing a digital-dollar wallet and payment card in Paraguay, targeting newcomers and crypto users, though it is not designed mainly for people paid in guaraníes. Flood Disruption: El Niño-driven river rises have forced evacuations in Paraguay and disrupted daily life and local economies. Air Links: GOL plans to suspend its Asunción–Rio de Janeiro route from February 2027, citing weak demand and higher fuel costs. Exports: Paraguay plans five international livestock audits to secure and expand meat exports, and has completed its first watermelon shipment to Uruguay. Growth Outlook: The World Bank raised Paraguay’s 2026 growth forecast to 4.7%, the highest in the region.

Digital Finance: Peanut is testing a digital-dollar wallet and payment card in Paraguay, aimed mainly at newcomers, digital nomads and crypto users rather than residents paid in guaraníes. Flood Disruption: El Niño-linked river flooding has displaced families in Paraguay and affected daily and economic life, with about 1,500 families evacuated in Alto Paraná and Ñeembucú. Air Links: GOL plans to suspend its Asunción–Rio de Janeiro route from February 2027, citing weak demand and rising fuel costs. Growth Outlook: The World Bank raised Paraguay’s 2026 growth forecast to 4.7%, the highest in the region. Meat Exports: Paraguay is preparing for five international livestock audits to help secure and expand meat exports. Trade: The country completed its first watermelon shipment to Uruguay, opening a new export route. Infrastructure: Early works on Asunción’s commuter rail project are expected in the first half of 2027. Credit: Paraguay’s housing market continues to face a gap between mortgage access and affordability.

Flood Emergency: El Niño-driven Paraná River flooding has displaced families in Paraguay, with about 1,500 households evacuated in Alto Paraná and Ñeembucú and roughly 2,000 people affected in Ayolas, disrupting local livelihoods. Air Connectivity: GOL will suspend its Asunción–Rio de Janeiro route from February 2027, citing weak passenger demand and higher fuel costs. Meat Exports: Paraguay faces five international livestock audits from October to December; the reviews will shape plant approvals and access to key markets including the EU, Taiwan and Chile. Growth Outlook: The World Bank raised Paraguay’s 2026 growth forecast to 4.7%, the highest in the region. Trade: Paraguay has completed its first watermelon export to Uruguay, opening a new outlet for local producers.

Flood Disruption: El Niño-linked Paraná flooding has displaced about 1,500 families in Alto Paraná and Ñeembucú, with roughly 2,000 people affected in Ayolas, disrupting livelihoods and local activity. Air Links: GOL will suspend its Asunción–Rio de Janeiro route from February 2027, citing weak demand and rising fuel costs; the service launched in January. Meat Exports: Auditors from Chile, Taiwan, the EU, Egypt and Peru will inspect Paraguay’s livestock sector through December. Their findings could affect access to key markets. Growth Outlook: The World Bank raised Paraguay’s 2026 growth forecast to 4.7%, the region’s highest. Trade & Investment: Paraguay has made its first watermelon export to Uruguay, while the 2026 Rally of Paraguay generated more than US$209 million in economic impact.

Meat Exports: Paraguay faces five audits through December by Chile, Taiwan, the EU, Egypt and Peru. Inspectors will assess sanitary controls and meat plants, with results shaping export approvals and market access. Flooding: El Niño-driven rains have swollen the Paraná and other rivers, flooding parts of Paraguay and forcing residents to evacuate and ranchers to move cattle to higher ground. Growth Outlook: The World Bank raised Paraguay’s 2026 growth forecast to 4.7%, the highest in the region. Global Finance: Central Bank Governor Carlos Carvallo Spalding completed his term chairing the World Bank and IMF Boards of Governors; Pakistan will take over in 2027. Trade and Tourism: Paraguay shipped watermelons to Uruguay for the first time, while the 2026 WRC Rally of Paraguay generated an estimated US$209 million in economic impact.

Growth Outlook: The World Bank raised Paraguay’s 2026 growth forecast to 4.7%, the region’s highest, underscoring the country’s strong economic momentum. Meat Exports: Five audits by Chile, Taiwan, the EU, Egypt and Peru from October to December will assess sanitary standards and export approvals, with results shaping access to key markets. Trade and Investment: China sanctioned Paraguay’s communications minister over ties with Taiwan as a proposed 10-megawatt AI computing center remains under technical review. Tourism: FITPAR opened in Asunción, with organizers expecting more than 10,000 visitors and 600-plus brands; the fair also features business meetings.

Flood Disruption: Paraná River flooding displaced more than 600 families and suspended operations at 14 migration posts, disrupting border communities and trade routes. China-Taiwan Tensions: Beijing sanctioned Paraguay’s ICT minister over ties with Taiwan, as a proposed 10-megawatt AI computing center remains in feasibility studies. The project links Paraguay’s electricity resources with Taiwanese technology. Growth Outlook: The World Bank raised Paraguay’s 2026 growth forecast to 4.7%, the highest in the region. Trade and Investment: Paraguay completed its first watermelon export to Uruguay, while the 2026 World Rally Championship generated an estimated US$209 million in economic impact. Infrastructure: Early works on Asunción’s commuter rail project are planned for the first half of 2027.

Growth Outlook: The World Bank raised Paraguay’s 2026 growth forecast to 4.7%, the highest in the region. China Tensions: Beijing sanctioned Paraguay’s communications minister over ties with Taiwan; Asunción says it will maintain the relationship, keeping diplomatic friction in focus. Trade: Paraguay completed its first watermelon export to Uruguay, while a U.S. beef-import expansion that included Paraguayan products fell short of its target and brought little relief to American shoppers. Infrastructure: Early works on Asunción’s commuter rail are slated for the first half of 2027. Tourism and Events: The 2026 WRC Rally of Paraguay generated more than US$209 million in economic impact, highlighting the event’s reach across the local economy. Flood Risk: Heavy rain and rising Paraná River levels have prompted evacuations and dam releases, putting flood impacts on communities and infrastructure in view.

Growth Outlook: The World Bank raised Paraguay’s 2026 growth forecast to 4.7%, the region’s highest, citing strong domestic demand, agricultural exports and hydropower, alongside the country’s investment-grade rating. Infrastructure: Preparatory work on the US$450 million Asunción–Luque commuter rail is expected to start in the first half of 2027, with service targeted ahead of the 2030 World Cup. Digital Investment: Paraguay rejected China’s sanctions on Communications Minister Gustavo Villate over ties with Taiwan; Villate says cooperation, including plans for the Yguazú Digital AI center, will move faster. Trade: Paraguay has completed its first watermelon export to Uruguay, opening a new cross-border market for local producers. Tourism and Events: The 2026 WRC Rally of Paraguay generated more than US$209 million in economic impact, underscoring the commercial potential of major sporting events.

Growth Outlook: The World Bank raised Paraguay’s 2026 growth forecast to 4.7%, the region’s highest, citing strong domestic demand, agricultural exports and hydropower. Infrastructure: Preparatory work on the Asunción–Luque commuter rail is due to begin in early 2027. The first phase is part of a planned US$450 million project aimed at cutting travel times by up to 40%. Digital Investment: After China sanctioned Communications Minister Gustavo Villate over Paraguay’s ties with Taiwan, the government reaffirmed the partnership. Villate said work on projects including an AI center would move faster; the measures target officials, not Paraguay’s economy. Trade and Tourism: Paraguay completed its first watermelon export to Uruguay, while the 2026 Rally of Paraguay generated more than US$209 million in economic impact, according to a recent report.

Taiwan Tensions: China sanctioned Paraguay’s ICT minister Gustavo Villate over ties with Taiwan, freezing any assets he holds in China and barring Chinese organizations and individuals from doing business with him. The measures are not an announced trade embargo; Paraguay says it will press ahead with Taiwan-backed digital projects, including the Yguazú AI center. Fresh Export Market: Paraguay shipped its first 21-tonne watermelon consignment to Uruguay, opening a new market for growers in San Pedro after meeting phytosanitary requirements. Investment Plans: HIVE plans a 400-megawatt, hydro-powered data center campus in Paraguay, with a further expansion phase. Rally Returns: The 2026 WRC Rally of Paraguay generated more than US$209 million in economic impact, according to a recent report.

Agricultural Exports: Paraguay has shipped its first official watermelon consignment to Uruguay: 21 tonnes from San Pedro growers, cleared under Uruguay’s phytosanitary rules. The new market offers fruit producers room to expand regional sales. Diplomatic Tensions: China sanctioned Communications Minister Gustavo Villate over Paraguay’s ties with Taiwan, imposing a visa ban, asset freeze and restrictions on Chinese entities doing business with him. Beijing called the move a warning; the sanctions are largely symbolic, but the dispute puts Paraguay’s diplomatic balancing act in focus. Housing Finance: Home loans doubled in four years to ₲10.87 trillion by August, but a study found only 9,599 of 273,316 potential first-time buyers aged 25–40 in Greater Asunción could afford a median new two-bedroom apartment, with the down payment a key barrier. Tourism and Events: The 2026 WRC Rally of Paraguay generated more than US$209 million in economic impact, according to a recent report. Digital Infrastructure: HIVE plans a 400-megawatt, hydro-powered campus in Paraguay, with a further expansion phase.

China Sanctions: Beijing barred Paraguay’s communications minister, Gustavo Villate, from China and froze any assets there over Paraguay’s ties with Taiwan. The measures are largely symbolic, but Beijing called them a warning to others; the US said it opposes coercion of countries exercising sovereign rights. Housing and Credit: Paraguay’s home-loan portfolio doubled in four years to ₲10.87 trillion, yet a study found only 9,599 of 273,316 potential first-time buyers aged 25–40 in Greater Asunción could afford a median new two-bedroom apartment after saving for up to five years. Rally’s Economic Impact: The 2026 World Rally Championship event generated an estimated US$209.9 million, up 57.5% from 2025, with spending gains across food, fuel, pharmacies, supermarkets and hotels. Investment and Infrastructure: HIVE is planning a 400-megawatt hydro-powered campus in Paraguay, with a further expansion planned. Fitch maintained the country’s BB+ rating with a positive outlook, while JPMorgan’s chief praised Paraguay’s investment potential.

China-Taiwan Tensions: Beijing sanctioned Paraguay’s communications minister Gustavo Villate, freezing assets in China, denying visas and barring Chinese entities from doing business with him over his Taiwan ties. Housing Finance: Home loans doubled to ₲10.87 trillion (US$1.84 billion) in four years, but a study found only 9,599 of 273,316 potential first-time buyers in Greater Asunción could afford a median two-bedroom apartment, with the down payment the main hurdle. Rally’s Economic Boost: The 2026 WRC event generated an estimated US$209.9 million in economic impact, up 57.5% from 2025, with gains for restaurants, fuel sellers, hotels and other local businesses. Investment Outlook: Fitch maintained Paraguay’s BB+ rating with a positive outlook, while noting seven hurdles remain before investment-grade status; separately, HIVE plans a 400-megawatt hydro-powered data-centre campus.

Diplomatic Risk: China sanctioned Communications Minister Gustavo Villate over Paraguay’s ties with Taiwan, freezing his assets in China and barring local organisations from doing business with him. The move raises pressure on Asunción’s diplomacy, but the announced measures target the minister, not Paraguay broadly. Rally Payoff: The 2026 WRC Rally of Paraguay generated an estimated US$209.9 million in economic activity, up 57.5% from 2025. Spending rose across Itapúa, led by gastronomy (+95%), fuel (+55%) and hotels (+22%). Investment Outlook: JPMorgan’s Southern Cone chief pointed to Paraguay’s stability and opportunities in energy, forestry and infrastructure. Fitch maintained the country at BB+ with a positive outlook, while noting hurdles remain before investment grade. New Capacity: HIVE plans a 400-megawatt hydro-powered computing campus in Paraguay, adding to the country’s push to attract investment around its abundant electricity.

Rally Boost: Paraguay’s 2026 WRC event generated an estimated US$209.9 million in economic activity, up 57.5% from 2025. It also lifted spending across Itapúa, led by gastronomy, pharmacies and fuel. Investor Interest: JPMorgan’s Southern Cone chief highlighted Paraguay’s stability and small state as draws for investors, with energy, forestry and infrastructure among the opportunities. New Investment: HIVE plans a 400-megawatt, hydro-powered computing campus in Paraguay, with room to expand. Growth and Credit: The World Bank projects 2.1% growth for Paraguay this year. Fitch kept the country at BB+ with a positive outlook, though seven hurdles remain before investment-grade status.