Paraguay’s Foreign Direct Investment Base Deepens as BCP and FLAR Map $10 Billion in Net Inflows
A new study by Paraguay’s Central Bank and the Latin American Reserve Fund shows how foreign investment in the country has broadened beyond traditional activities, with services and manufacturing playing an increasingly important role.
Paraguay accumulated approximately US$10 billion in net direct investment flows between 2008 and 2024, according to a new study presented on 6 August by the Central Bank of Paraguay (BCP) and the Latin American Reserve Fund (FLAR). The report offers one of the most detailed recent pictures of how foreign capital has evolved across the Paraguayan economy. Banco Central del Paraguay
Non-financial services attracted the largest share of investment over the period, particularly commerce, telecommunications and transport. Manufacturing, meanwhile, has become more diversified and has increasingly moved into higher value-added activities. Financial services recorded comparatively high profitability, while the primary sector represented a smaller share of total investment but has recently expanded into non-traditional activities. Banco Central del Paraguay
The findings are significant for international investors because they suggest that Paraguay’s investment story is becoming less dependent on agriculture and commodity production. REDIEX has separately reported that the number of countries investing in Paraguay rose from 39 in 2008 to 68 in 2024, while the accumulated stock of foreign direct investment quadrupled over the same period. MIC
This diversification comes at a favorable macroeconomic moment. The Central Bank currently forecasts 4.5% GDP growth in 2026, following estimated growth of 6% in 2025, while its 2026 inflation forecast stands at 3.3%. The IMF has similarly highlighted Paraguay’s macroeconomic resilience, strong external buffers and improving sovereign risk profile. Banco Central del Paraguay
For foreign companies evaluating Paraguay, the new investment data reinforces a broader trend: the country is increasingly positioning itself not simply as an agricultural exporter, but as a regional base for manufacturing, logistics, business services and internationally oriented investment.
Sources: Banco Central del Paraguay; FLAR; REDIEX; IMF. Banco Central del Paraguay