LatinNews Daily - 18 December 2025

*International credit ratings agency Standard & Poor’s (S&P) has raised its sovereign credit ratings on Paraguay up one notch from ‘BB+/B’ to ‘BBB-/A-3’, which is an investment-grade rating. In a statement, S&P explained that the “upgrade reflects Paraguay’s recent history of sound economic policies, which have led to strong economic growth, and monetary and fiscal flexibility”, adding that “political consensus on these policies and on the importance of private investment for Paraguay’s economic development has resulted in effective governance”. The statement also includes S&P’s annual GDP growth forecast for Paraguay, projecting 5.4% growth for this year. The ratings agency projects that investment in Paraguay will grow from 17% of GDP in 2025 to 27% in 2026-2028, up from an average of 24% in the 2022-2024 period, which S&P attributes to a “pipeline of projects in maquiladoras, construction, forestry, energy, and services sectors”. Regarding political stability, S&P highlighted the dominance in congress of the ruling conservative Asociación Nacional Republicana-Partido Colorado (ANR-PC), which ensures a “constructive working relation” between the legislature and the executive government led by President Santiago Peña, allowing him to pursue “an aggressive reform agenda” of pro-market policies.

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