Paraguay is experiencing a cycle of economic expansion that has not been seen since the construction of the Itaipu dam. Over the past three years, the local economy has grown an average of 4% per year, exceeding the regional average. For 2026, the projection is for GDP growth above 4%, maintaining the recent pace.
This performance has attracted a growing number of Brazilians. Data from the National Directorate of Migration indicate that residency applications from Brazilian citizens doubled in the last five years, with more than 23,000 requests recorded in 2025.
Economist Alexandre da Costa, a researcher at Unila and UFPR, explained that the low cost of living and production are decisive factors. “Paraguay's development strategy is based, above all, on the low cost of production for companies and the low cost of living for the population,” he said, also highlighting the abundance of electricity at reduced prices.
A BBC report indicated that Brazilians who moved to Paraguay cited the perception that Brazil is facing an economic crisis as a reason for leaving the country. One interviewee said he does not believe the official data on Brazil's economic development.