Economy & Business - October 2025

PARAGUAY | Fitch revises up Paraguay’s outlook. On 6 October international credit ratings agency Fitch 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. It highlighted the government’s fiscal consolidation plan, which projects a 1.9% of GDP deficit this year and a return to the 1.5% deficit limit next year. Other factors behind Fitch’s upgrade include an expected decline in the public debt burden to 35% of GDP in 2025, down from 37.8% in 2024, and “structural increases to the still low revenue base”.