Economy & Business - May 2026

Since taking office in 2023, President Santiago Peña pushed hard to implement market-friendly reforms and tighten the reins of public spending to consolidate Paraguay’s reputation as one of the region’s economic success stories. But there is a limit to how much free-market and belt-tightening a nation can take. Peña’s popularity has declined since the start of his term, and with municipal elections coming up later this year, big wigs in the ruling Asociación Nacional Republicana-Partido Colorado (ANR-PC) have pushed for a change in direction – less austerity and more tangible benefits.