Paraguay records 0.3% deflation in June, posting the second lowest inflation rate in the region
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.
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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.
Paraguay faces a fiscal deficit above the legal target of 1.5% of GDP, pressured by pending debts and reduced revenues, while the IMF insists on strict compliance with the Fiscal Responsibility Law.
Senabico will hold an auction of assets seized from drug trafficking next Thursday
Economist Jorge Garicoche states that Paraguay, which attracts low-scale foreign investments mainly in plastics and textiles, needs more stable rules in infrastructure and energy to capture larger and impactful projects, remaining a strategic destination for Brazilian entrepreneurs.
Paraguay has inaugurated its first experimental green hydrogen unit at the Itaipu Technological Park, which already operates the full production cycle using clean energy from the plant to fuel vehicles and train specialists.
Paraguay's Unified National Registry (RUN) has accumulated nearly 8,000 new cases in two weeks, raising the total backlog to over 45,000, and notaries report that processing times for documents, especially real estate certificates, have lengthened across the country.
Paraguay invested over $170 million in circular economy initiatives last year, generating more than 7,000 direct jobs and enabling the recycling of over 215,000 tons of materials annually.
Paraguay's public debt reached US$21.8 billion in May, a 6.5% increase in absolute value over five months, but the debt-to-GDP ratio fell to 36.2% due to the appreciation of the guarani and growth in GDP projections.
The import of electric and hybrid vehicles in Paraguay grew by 65.7% in 2025, but the fleet is still one of the smallest in the region, with only 4,359 units in circulation as of March 2026, according to data from CADAM and OLACDE.
Encarnación merchants hold a monthly discount fair to boost sales during the low season, caused by the end of the high season and the economic crisis in Argentina.
British company Atome is seeking an agreement with Paraguay's state electricity utility ANDE to resolve the impasse over the energy contract and unlock its fertilizer plant in Villeta, a project financed and supported by international institutions that promises to generate thousands of jobs.
Revenue for Paraguay's tax and customs authority, DNIT, fell by 17% over one year, representing a loss of G 238.8 billion. The decline is attributed to the appreciation of the guaraní against the US dollar, which reduced the local currency value of customs taxes. The majority of regions were affected, with sharp drops at key points such as Silvio Pettirossi Airport (-41%) and Santa Helena (-78%).
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.
Consumer credit in Paraguay grew by 42% through May, reaching G. 35.52 billion, while the International Monetary Fund (IMF) warns of the risks of over-indebtedness, especially among lower-income families.
Paraguay has executed only 34.3% of the $602.3 million in bilateral loans for public works, leaving $395.7 million unused.
Mercosur has approved an agreement granting regional legal validity to the digital identities of its member countries, allowing citizens and businesses to carry out cross-border procedures online without paper documentation.
The high volatility of the Brazilian real against the Paraguayan guarani is reversing the trade flow on the Brazil-Paraguay border, encouraging Paraguayans to shop in Brazil while reducing the purchasing power of Brazilian informal cross-border traders and affecting the value of remittances.
The construction sector in Paraguay is pressuring the government for payment of a $340 million debt and for increased investment in infrastructure, which is currently insufficient to drive the country's economic growth.
Trading in shares of Atome PLC was suspended on the London Stock Exchange due to a delay in publishing its financial statements, caused by ongoing negotiations with Paraguay's state electricity utility, ANDE, over the power contract for its green fertilizer project in Villeta.
Mercosur and Japan have begun negotiations for an Economic Partnership Agreement that could create one of the world’s largest free trade zones, with a combined GDP of $7 trillion and a focus on sectors such as agribusiness, energy, and the automotive industry.
The Central Bank of Paraguay has capped card fees at 3% for credit and 2% for debit, including QR Code payments, to reduce costs for merchants and address distortions caused by intermediaries.
Copaco and Vox require $100 million to modernize infrastructure and deploy the 5G network in Paraguay, according to the Telecommunications Workers Union.
The global dollar strengthens with the Fed's monetary adjustment, while the Paraguayan guaraní remains stable, closing at G. 6,081.67 at the end of June, driven by factors such as the record soybean harvest and investments in local assets.
The influx of Brazilian students into Ciudad del Este is boosting the local economy with over $14 million monthly, but rising rents are displacing Paraguayan residents from traditional neighborhoods, sparking a housing crisis.