The real estate sector leads in attracting foreign capital in Paraguay, concentrating 44% of direct investment flows recorded between 2008 and 2024, according to a report from the Central Bank of Paraguay (BCP). The study "Characterization of Direct Investment (DI) in Paraguay: a sectoral analysis" indicates that non-financial services — which include commerce, transportation, telecommunications, and real estate activities — captured about $4.4 billion in the period, with an average return of 15%.
The manufacturing industry appears in second place, with 26% of investments, equivalent to $2.64 billion. The segment is driven by the production of meat, vegetable oils, pharmaceutical products, chemicals, and auto parts, in addition to having a strong export orientation, with average external sales of $2.7 billion annually. Financial services, such as banks and insurers, represented 20% of the flows, with a return close to 20% and a net margin of 28% in 2024.
The primary sector, which includes livestock, forestry, and agriculture, accounted for only 10% of direct investments. The report highlights that the number of companies with foreign capital in the country grew from 44 to 192 between 2008 and 2024, with a peak expansion between 2012 and 2016, when net flows exceeded $1 billion.
On average, Paraguay received $590 million annually in direct investment during the analyzed period, equivalent to 1.6% of Gross Domestic Product (GDP). The BCP attributes part of this performance to institutional reforms but warns that challenges such as poor infrastructure, legal security, and low institutional efficiency still limit the impact of capital inflows on the economy and exports.