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LatinNews Daily - 15 December 2025

In brief: Paraguay’s central bank raises growth forecast

*Paraguay’s central bank (BCP) has revised up its GDP growth forecast for this year to 6.0%, up from a previous forecast of 5.3% in October. The BCP’s president, Carlos Carvallo, presented the bank’s assessment of economic performance in 2025 and macroeconomic projections for 2026 during a conference session. According to the latest forecasts, the economy will also grow by 4.2% in 2026, when inflation is expected to converge to the BCP’s 3.5% target. Inflation is forecast to end 2025 at 3.6%. During his presentation, Carvallo said that the upward revision of GDP for 2025 “confirms the strength and resilience of the Paraguayan economy in the face of global uncertainty”, highlighting the contribution of all sectors of the economy. By 2026, he said that Paraguay would “once again be among the fastest-growing economies in the region”, highlighting the expected strong performance of the services, manufacturing, and construction sectors, as well as “more dynamic and diversified domestic demand”.

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