LatinNews Daily - 07 October 2025

*The international credit ratings agency Fitch has affirmed Paraguay’s Long-Term Foreign Currency Issuer Default Rating (IDR) at ‘BB+’ and revised the Rating Outlook to Positive from Stable. In a statement, Fitch said that its decision “reflects Paraguay’s strong growth performance”, forecasting growth of 4.8% in 2025, up from 4.2% in 2024, as well as growth of 4.3% in 2026 and 4% in 2027. It also highlights a “robust investment pipeline”, noting “large-scale investment projects” totalling 16% of projected 2025 GDP across various sectors, and low fiscal deficits (noting the government’s fiscal consolidation plan which envisions a 1.9% of GDP deficit this year and a return to the 1.5% of GDP deficit limit next year). Other factors behind Fitch’s upgrade include an expected decline in the public debt burden to 35% in 2025, down from 37.8% of GDP in 2024, and “structural increases to the still low revenue base”. The credit ratings agency adds that the positive outlook also “reflects an active economic reform agenda and gradual reduction of the high foreign currency share of government debt”.

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