Paraguay is the third country with the lowest sovereign risk in Latin America, behind only Uruguay and Chile, according to JP Morgan's Emerging Markets Bond Index (EMBI). The indicator, which measures the risk premium countries pay relative to US Treasury bonds, places Paraguay in a prominent position with 106 basis points. For context, 100 basis points equal 1% in additional interest. Uruguay leads with 68 points, while Brazil has 177 points and Argentina appears in the worst position with 434 points.
This macroeconomic stability is pointed out as one of the country's main assets by experts. Philippe Moura, Director of Strategy and Sales at Eurasia Group for Brazil and Latin America, highlights that Paraguay has valuable advantages for attracting investments in a fragmented global scenario. "Paraguay has four things that are very valuable: energy is the first and most obvious. The tax issue, much more attractive than Brazil and Argentina. The third part is abundant water. And the fourth is a matter of political-regulatory stability," he stated in an interview.
Moura assesses that these conditions may allow the country to compete for investments in high-technology sectors, such as data centers and artificial intelligence, even in the face of competition from larger neighbors. He suggests that the strategy for a small country like Paraguay should focus on diversifying partnerships and leveraging its "hard assets," such as energy, water, and agricultural land, which gain value in a world with more redundant supply chains.
In addition to low country risk, Paraguay has just been recognized as the second best nation in South America to establish a new residence, according to the Global Relocation Index by consultancy Rumavi. The country ranked 44th globally, behind Uruguay (35th) and ahead of Chile (51st), with an overall score of 66.5. The study, which evaluated 192 territories, especially praised Paraguay's financial stability, which scored 80 points in criteria such as banking infrastructure and favorable tax system.
The report also attributed 69 points to the country in overall stability and 54 points in the settlement and opportunities for foreigners category, which analyzes digital infrastructure and business possibilities. Security and stability received 57 points. The global ranking was led by Estonia, followed by Portugal, Lithuania, the Czech Republic, and Malta, with emphasis on the European predominance among the most attractive destinations.