Paraguay attracts USD 1.18 billion in foreign investment in 2025, the highest in 31 years

Paraguay received USD 1.18 billion in foreign direct investment (FDI) in 2025, according to the report Foreign Direct Investment in Latin America and the Caribbean 2026, presented by the Economic Commission for Latin America and the Caribbean (ECLAC/CEPAL) on June 23, 2026. It is the highest level recorded in the country in 31 years and the third consecutive year Paraguay has surpassed the USD 1 billion mark.

President Santiago Peña, in his annual address to Congress on July 2, 2026, put it plainly: "we have never had as much foreign and domestic investment as we do now."

Three consecutive years above USD 1 billion

The consistency of the flow is as significant as the record figure itself. Over the previous decade (2010–2019), Paraguay attracted an average of USD 692 million per year in FDI. Since 2023, inflows have remained above the USD 1 billion threshold:

• 2023: USD 1,112 million
• 2024: USD 1,097 million
• 2025: USD 1,180 million (31-year peak, +7.6% vs 2024)

That +7.6% growth contrasts sharply with regional growth of just +1.7% over the same period. Total FDI into Latin America and the Caribbean reached USD 194.2 billion in 2025, with starkly different performances by country: while Paraguay grew, Argentina fell 73.1% and Colombia fell 16.2%.

What the investment is made of

CEPAL's report breaks down Paraguay's 2025 FDI into three components:

• New capital contributions: 59% of the total, up +24% from 2024 — the most dynamic component: fresh money entering the country for new operations.
• Profit reinvestment: 30%, though it fell 18.1% — a sign that companies already operating in Paraguay reinvested fewer of their profits this year.
• Intercompany loans: 11%, up +24.1%.

The dominance of new capital contributions (+24%) over profit reinvestment signals that most of the growth came from genuine new investment, not accumulated returns from existing operations.

USD 911 million in new project announcements

Beyond the FDI flow tracked by CEPAL, the Ministry of Industry and Commerce (MIC) / REDIEX recorded new investment project announcements totaling USD 911 million in 2025, up 65% from the prior year. Three sectors led the announcements:

1. Communications: data processing centers and mobile data infrastructure.
2. Food and beverages.
3. Renewable energy.

During 2025, 2,354 foreign companies from 41 countries formally expressed interest in investing in Paraguay through REDIEX, "nearly doubling" the prior year's count.

Data centers: the sector driving part of the boom

The communications sector — led by demand for digital infrastructure — is the most active in announcements. The most documented case is HIVE Digital Technologies (NASDAQ: HIVE), which operates 300 MW of computing capacity in Yguazú (Alto Paraná), with Phases 1 and 2 completed in 2025. Phase 3, adding 100 MW, was approved and is scheduled for Q3 2026.

HIVE operates on Itaipú hydroelectric power at costs of approximately USD 0.044/kWh, one of the lowest rates in the world for this type of operation. The combination of clean, cheap energy, solid legal infrastructure, and low tax burden explains why Paraguay is emerging as a destination for this industry.

Another active player is X8 Cloud USA (via subsidiary Levip SA), which announced operations starting in 2026 with 50 MW and plans for expansion to 500 MW in 2027.

Renewable energy: a new law opens the market

The enactment of Law No. 7599/2025 was a milestone: for the first time, Paraguay opened the electricity market to private producers for six renewable sources. Until then, electricity generation was reserved for the State (Ande and Itaipú).

The first concrete project under this new framework is a 140 MW solar plant in Loma Plata (Boquerón), developed with World Bank support, with a public hearing held in June 2026. Power purchase agreements (PPAs) run for up to 30 years, providing long-term certainty for private investors.

Maquila: a new law and 35,000 direct jobs

Paraguay's maquila regime — which allows duty-free import of inputs and exports of finished products with a flat 1% tax on added value — received a legislative update under Law No. 7547/2025. By year-end 2025, the sector had approximately 300 active companies, 35,000 direct jobs, and exports of USD 1.305 billion.

The Law 60/90 incentive program — which grants tax exemptions of up to 95% for the first five years — accumulated USD 650 million in investments in January–August 2025 alone, up +183% from comparable periods, with 121 new approved projects and 4,146 projected jobs.

Why Paraguay grows when the region doesn't

The contrast is striking. While Paraguay sets a 31-year record, Argentina loses 73.1% of its FDI and Colombia falls 16.2%. The structural advantages that explain the difference are well-known but concrete:

• 10% corporate income tax — the lowest in the region.
• Territorial taxation: income generated outside Paraguay is not taxed.
• Macroeconomic stability: inflation at ~3.5%, maximum fiscal deficit of 1.5% of GDP, GDP growth of 6.6% in 2025 (the highest in 12 years).
• Double investment grade: in December 2025, Standard & Poor's granted Paraguay its second investment grade rating, reinforcing confidence among international capital.
• Clean, cheap energy: electricity costs of ~USD 0.044/kWh for industry, backed by Itaipú's surplus.
• Expanded investor network: Paraguay grew from 39 direct investor countries in 2008 to 68 in 2024.

What's next: Paraguay Day and 2026 projections

The government projects sustained investor momentum into 2026. REDIEX estimates new project announcements exceeding USD 700 million this year. Paraguay Day in New York, scheduled for September 2026, will present international investors with a portfolio of opportunities exceeding USD 3 billion in projects.

The Central Bank revised its 2026 GDP growth projection upward in July, from 4.2% to 4.5%. The USD 280 million in new investment projects already approved in the current year suggests 2026 could set another milestone.

The question the market is no longer asking is whether Paraguay can attract foreign investment. The question is whether it can absorb it — in infrastructure, human capital and institutional capacity — at the pace it is arriving.