COUNTRY

Paraguay

Research related to Paraguay.

Global System & Power

Paraguay: war-shaped state formation, hydroelectric rents and the transition from low-cost agriculture to investment-grade growth

Paraguay's small, landlocked economy was profoundly reshaped by nineteenth-century war, twentieth-century authoritarian rule and later integration through Itaipu, agriculture and Mercosur; in 2026 strong growth, renewable electricity and improving credit quality create an opportunity to raise productivity beyond commodities and informality.