Friday, July 31, 2026.
Paraguay
This week, we’re heading to the very heart of South America to shine a spotlight on Paraguay, a country that may not always make international headlines but has a remarkable story to tell. Often referred to as the “Heart of South America” not only because of its central location but also because of the warmth of its people, Paraguay is a nation where tradition, resilience, and opportunity come together in fascinating ways.
One of the few countries in the world with two official languages, Spanish and Guaraní, Paraguay proudly embraces its indigenous heritage while continuing to grow as a modern economy. From the bustling streets of Asunción to the tranquil beauty of the Chaco and the Paraná River, the country offers an incredible blend of culture, history, and natural beauty.
Paraguay is also home to one of the world’s largest hydroelectric power plants, the Itaipú Dam, a testament to the country’s ability to think big and collaborate across borders. Its expanding agricultural sector, growing manufacturing base, and increasingly attractive business environment have positioned Paraguay as one of the quieter success stories in Latin America.
Of course, no visit to Paraguay, real or virtual, would be complete without mentioning its passion for football, its world-famous tereré (a refreshing cold herbal drink perfect for warm weather), and the genuine hospitality that visitors often remember long after they’ve returned home.
So, whether you’ve visited Paraguay before or are discovering it for the first time, we hope this week’s newsletter offers an enjoyable glimpse into a country whose greatest strength may simply be the character and spirit of its people.
¡Bienvenidos a Paraguay!
Brett Mikkelson
Founder, B.M. Investigations, Inc. – Private Investigations in Panama
Presidents of Ecuador and Paraguay Forge Alliance to Combat Crime
The presidents of Ecuador, Daniel Noboa, and Paraguay, Santiago Peña, announced on Wednesday what they described as a “strategic alliance” to combat organized crime and address other shared challenges facing their countries.
The visit marks President Peña’s first official trip to Ecuador since taking office in 2023, although the two conservative leaders have met previously during international events. Both also attended the inauguration of Peruvian President Keiko Fujimori earlier this week.
During a joint press conference, Peña said the leaders discussed bilateral and regional issues, emphasizing that “Paraguay and Ecuador clearly understand that there can be no development or prosperity unless we are able to provide security for our citizens.”
President Noboa stressed the importance of regional unity, stating that Latin American nations have a responsibility to work together to strengthen competitiveness and confront common threats, rather than allowing criminal organizations to exploit divisions.
The two governments signed several agreements aimed at strengthening bilateral cooperation in areas including public security, defense, technical and military cooperation, cybersecurity, and public order. According to Ecuador’s presidency, the agreements also include an extradition treaty designed to streamline judicial cooperation, along with measures covering air services, the reciprocal recognition of driver’s licenses, and expanded trade relations.
Both Ecuador and Paraguay are members of the “Shield of the Americas” initiative, launched by the United States to strengthen regional cooperation against narco-terrorism and transnational organized crime.
Ecuador has experienced a sharp rise in organized crime over the past five years, with criminal groups linked to international drug trafficking networks taking advantage of the country’s strategic location along Pacific drug trafficking routes to North America, Central America, and Europe. The country recorded more than 9,000 violent deaths in 2025, one of the highest homicide figures in the region.
Moody’s Reaffirms Investment-Grade Rating
In its assessment released on Friday, Moody’s reaffirmed Paraguay’s Baa3 investment-grade rating with a stable outlook, citing the country’s credible monetary policy, consistent record of price and external stability, and political stability as key strengths supporting its credit profile.
The rating agency stated that these factors help maintain Paraguay’s relatively low exposure to risks that could significantly affect its ability to meet its financial obligations.
Moody’s also highlighted Paraguay’s recent economic performance, noting that strong economic growth remains one of the country’s key credit strengths. The agency forecasts GDP growth of approximately 4.5% in 2026, supported by continued public infrastructure investment and significant private-sector projects that are expected to promote higher value-added industries and further diversify the economy.
The stable outlook reflects Moody’s assessment that the country’s credit risks remain balanced. According to the agency, increasing economic diversification, sustained public and private investment, and effective fiscal and monetary policies provide Paraguay with greater resilience to potential external shocks.
However, Moody’s also pointed to climate-related risks, given the country’s reliance on agriculture and hydroelectric power generation, as factors that could affect future economic performance.
On the fiscal front, the agency identified Paraguay’s relatively low and stable public debt as a major strength, while noting challenges such as the government’s limited revenue base and the share of debt denominated in foreign currency. Moody’s also emphasized the importance of continuing to strengthen public financial management and institutional capacity.
The agency further acknowledged the government’s plans to regularize outstanding obligations recognized in 2026 and improve public financial management by better aligning the national budget with financial planning and enhancing spending oversight and control mechanisms.
With the confirmation of its Baa3 rating and stable outlook, Paraguay remains within Moody’s investment-grade category. The country also holds a BBB- rating with a stable outlook from Standard & Poor’s, while Fitch Ratings maintains a BB+ rating with a positive outlook.
Expo Paraguay Showcases Livestock Genetics and Strengthens Agribusiness Opportunities
Expo Paraguay has established itself as the country’s premier event for showcasing the progress of Paraguay’s livestock industry, a sector that not only drives beef exports but also creates significant business opportunities through advances in animal genetics.
As the exhibition continues, industry leaders have highlighted the steady improvement in the quality of livestock presented at the event, noting that these genetic advances are translating into stronger commercial results for breeders and producers.
Silvio Vargas, coordinator of the Paraguayan Rural Association (ARP), emphasized that the exhibition remains the most important event on the nation’s agricultural calendar and continues to grow stronger each year.
“It is the country’s most important livestock event. Every year we see a greater number of animals in the show ring with exceptional genetic quality,” Vargas said.
According to Vargas, years of investment in genetic improvement by Paraguayan producers are now delivering measurable benefits to the livestock market.
“This is reflected in livestock auctions through higher sale prices for breeding animals,” he explained.
Genetic improvement has become one of the primary drivers of competitiveness for Paraguay’s cattle industry. The adoption of advanced reproductive technologies, selective breeding programs, and strategic crossbreeding has increased herd productivity, improved beef quality, and enhanced the market value of breeding stock sold through specialized auctions.
In this context, Expo Paraguay plays a strategic role by bringing together producers, breeders, domestic and international buyers, agricultural suppliers, financial institutions, and representatives from across the agribusiness value chain. Beyond the traditional livestock exhibitions, the event serves as a platform for business development, investment opportunities, and the promotion of technological innovations that continue to strengthen the sector.
The 2026 edition also reflects the strong momentum of Paraguay’s livestock industry, supported by growing beef exports and increasing demand for Paraguayan livestock genetics both domestically and across regional markets.
Paraguay Advances a New National Quality Policy to Strengthen Competitiveness
Paraguay has launched the process of updating and redefining its National Quality Policy (NQP), an initiative led by the Ministry of Industry and Commerce (MIC) in partnership with the United Nations Industrial Development Organization (UNIDO). The objective is to strengthen the country’s competitiveness and build a quality infrastructure aligned with the demands of international markets.
The initiative was officially presented on July 21, 2026, during a workshop held at the Ministry of Industry and Commerce under the SiCalidad Paraguay Program, financed by the European Union through its Global Gateway Strategy.
The event brought together government officials, technical agencies, private-sector representatives, academic institutions, and stakeholders from Paraguay’s National Quality System to develop a roadmap based on the real needs of the country’s productive sectors.
Opening the event, Vice Minister of SMEs Gustavo Giménez emphasized that quality is a strategic pillar for Paraguay’s industrial development and long-term competitiveness.
“Quality is not a bureaucratic requirement; it is the foundation upon which our companies build trust in the marketplace,” Giménez said, noting that compliance with quality standards enables businesses to innovate, add value, improve productivity, and compete more effectively in both domestic and international markets.
He explained that the updated National Quality Policy forms part of Paraguay’s broader industrialization strategy, where investment, technology, innovation, and exports require a strong framework of technical standards and institutional capacity.
“The National Quality System must become a fundamental component of Paraguay’s new industrial policy,” he stated, highlighting the need to strengthen standardization, metrology, accreditation, certification, inspection, and the technical infrastructure that supports productive industries.
Expanding Opportunities for Businesses
Giménez also stressed that strengthening the country’s quality infrastructure should benefit businesses of all sizes, particularly micro, small, and medium-sized enterprises (MSMEs).
He noted that while quality management may already be integrated into the operations of large companies, it can provide smaller businesses with the opportunity to move beyond local markets and compete internationally.
“This challenge should promote productive inclusion and make these tools available not only to large corporations but also to small entrepreneurs,” he said.
UNIDO Presents Assessment of Paraguay’s Quality System
During the workshop, UNIDO International Project Coordinator Eri Jorge presented the findings of an assessment conducted earlier this year, which included more than ten technical working groups involving institutions connected to Paraguay’s national quality infrastructure.
Jorge explained that National Quality Policies are dynamic instruments that must be updated regularly to respond to changing economic, technological, and commercial conditions.
“These are living documents designed to evolve over time,” he said, citing similar initiatives supported by UNIDO across Latin America.
The assessment concluded that Paraguay already possesses solid institutional capabilities and quality-related services used by productive sectors. However, it identified opportunities to improve coordination among the various institutions involved, reducing duplication of efforts and better aligning quality services with the needs of businesses.
The report also recommended strengthening monitoring mechanisms for the National Quality Policy and improving the effectiveness of coordination bodies such as the National Quality Commission.
Supporting International Trade
UNIDO representatives emphasized that a robust quality infrastructure is essential for helping Paraguay diversify production, enter new export markets, and improve its international competitiveness.
Services related to metrology, accreditation, standardization, and conformity assessment are considered critical for meeting the technical requirements established under international trade agreements.
According to the Quality Infrastructure for Sustainable Development Index, developed by UNIDO and partner organizations, Paraguay currently ranks 130th out of 155 economies, with a score of 16.8 out of 100. Officials stressed that this ranking highlights opportunities for improvement rather than a lack of institutional capacity, noting that existing capabilities can be significantly strengthened through better strategic coordination.
Technical Support to Boost Exports
UNIDO international expert María Giménez explained that the initiative aims to strengthen the country’s quality infrastructure services, enabling Paraguayan products to better meet international standards and gain easier access to demanding export markets.
She noted that stronger testing, certification, and technical support services would reduce technical barriers to trade and make exporting less costly and more accessible for Paraguayan businesses.
As an example, she explained that companies seeking to export to markets such as Germany, the United States, or the European Union would increasingly be able to obtain testing, certification, and technical assistance within Paraguay rather than relying on foreign providers.
A Long-Term Vision for Competitiveness
The SiCalidad Paraguay Program, implemented by UNIDO in partnership with the Ministry of Industry and Commerce and financed by the European Union through the Global Gateway Strategy, seeks to promote more competitive, sustainable, and inclusive economic growth.
The program is designed to strengthen confidence in Paraguayan products, facilitate access to international markets, attract investment, and support the growth of businesses of every size.
Government officials concluded that updating the National Quality Policy represents a strategic opportunity to build a long-term framework that will enable Paraguay to produce more efficiently, expand exports, and successfully compete in an increasingly demanding global economy.
Paraguay Rises to Sixth Place in Regional Business Tourism
Paraguay has earned international recognition for its progress in the International Congress and Convention Association (ICCA) 2025 Rankings, rising to sixth place in Ibero-America and the Caribbean.
The country also received the “Emerging Destination of the Region” award at FIEXPO Latin America 2026, further highlighting its growing reputation as a destination for international meetings, conferences, and conventions.
Paraguay climbed from 12th to 6th place in the ICCA rankings, reflecting the country’s increasing capacity to organize and host major international events.
To celebrate the achievement, the National Secretariat of Tourism (SENATUR) recognized the contributions of both public and private institutions that have supported Paraguay’s positioning in the global meetings industry, emphasizing the importance of collaboration between key sectors.
The “Emerging Destination of the Region” award was presented under the theme “Paraguay at the Top of MICE Tourism” (Meetings, Incentives, Conferences, and Exhibitions), recognizing the country’s rapid growth as a host for international congresses and conventions.
Paraguay’s Minister of Tourism, Jacinto Santa María, praised the joint efforts behind the achievement, stating that cooperation between the public and private sectors continues to create new opportunities.
“We are proud of what we have accomplished, but we are equally convinced that when the public and private sectors work toward the same goal, there are no limits to what our country can achieve,” he said.
The minister also emphasized the importance of maintaining this momentum by attracting more international events, fostering innovation, strengthening partnerships, and expanding business tourism beyond the country’s main destinations.
The recognition was shared with representatives of the Asunción, Ciudad del Este, and Itapúa Convention & Visitors Bureaus, as well as members of the Paraguayan Olympic Committee and representatives from the country’s medical, scientific, and academic organizations, all of whom have contributed to Paraguay’s growing prominence in the international meetings industry.
