Chile

Paraguay recorded deflation of 0.3% in June, reducing its annual inflation rate to 2.1%, the second lowest in the region, behind only Ecuador.

Taiwan was the primary destination, purchasing 86% of the pork exported by Paraguay in the first half of the year, which saw an 11% growth in volume and a 15% increase in revenue.

Paraguay's Congress will hold a joint session on Tuesday, June 30, to receive the president of Chile, José Antonio Kast, with protocol honors on the occasion of the Mercosur Heads of State Summit.

Paraguay formally joined the Santiago Regional Commitment against Transnational Organized Crime in June 2026, during the 56th General Assembly of the OAS in Panama City, expanding the agreement initially signed by Argentina, Bolivia, Chile, Ecuador, and Peru.

In 2026, Paraguay's apparent labor productivity was US$13,728 per person, placing it below eight Latin American countries, including Brazil, Chile, and Uruguay, and surpassing only Bolivia.

Chilean diplomat Hernán Brantes Glavic presented his credentials to Paraguayan Foreign Minister Rubén Ramírez Lezcano as the new ambassador of Chile to Paraguay, with the official ceremony before President Santiago Peña expected to take place at the Palacio de López.

The rise in auto parts theft in Paraguay, especially in vehicles imported through Chile, has driven up insurance premiums and led insurers to adopt measures such as coverage limits, annual claim caps, and deductibles to contain losses.

Economist Luis Rojas criticized the economic model of Santiago Peña’s government in Paraguay, highlighting contradictions between the growth rhetoric and fiscal challenges, such as the public debt reaching a historic level of USD 21.7812 billion in the first four months of 2026, representing 36.2% of GDP, along with low tax revenue, poor public services, labor informality, and foreign direct investment of only USD 400 million in 2024.

Senave recorded a record in Paraguay's stevia exports through May 2026, with a 518% increase compared to the previous year, totaling 142 tons exported mainly to Argentina, Uruguay, Chile, and Spain.

Paraguayan exports with a Certificate of Origin totaled $693 million in May, with the Americas as the main market ($510 million), led by Brazil ($190 million), followed by Argentina ($170 million) and Chile ($60 million).

Paraguay ended May with the third-lowest country risk in Latin America and the Caribbean, with an EMBI of 104 basis points, trailing only Uruguay (61 points) and Chile (86 points), according to data from Bloomberg Línea based on the index compiled by J.P. Morgan.

Brazil has proposed the creation of a free flight zone within Mercosur to allow national airlines to operate domestic flights in other member countries, aiming to enhance regional integration and facilitate low-cost flights.

The Paraguayan pork industry is advocating for an end to foot-and-mouth disease vaccination in order to access premium markets such as Japan and South Korea, projecting a surge in exports from 20,000 to 250,000 tons within five years.

Delegations from Mercosur countries and associates met in Asunción to discuss updating travel documents, information exchange, and document security, with Bolivia absent.

The National Police Investigations Department arrested a group suspected of targeting victims at airports and shopping malls to steal high-value watches. Among the cases attributed to the gang is the attack on former senator Armando Espínola. A Venezuelan national and several Paraguayans were detained, and vehicles used in the crimes were seized.

While buying vehicles becomes more affordable, filling the basic food basket weighs increasingly on Paraguayans' pockets, reveals an analysis by economist Jorge Garicoche.

Diego Garzón, from Colombia's Ministry of Labor, argued that Paraguay should invest in technical training in areas such as data mining and engineering to absorb the demand for new jobs generated by artificial intelligence. The warning comes after the announcement of an AI center in partnership with Taiwan, which drew criticism over the lack of specialized professionals in the country.

Yani Areco, a Paraguayan from Bella Vista Norte, was expelled from a bus in Chile after a passenger mistook the eucalyptus aroma of her mate for marijuana. The argument escalated with insults in Guarani, and both were disembarked by the driver.