As of March 2026, Paraguay’s gross public debt stands at around 35.5% of GDP, according to data from the Ministry of Economy and Finance, while Chile ended 2025 at 41.7% and has already reached 42.6% in the first quarter of 2026. Chile operates under a dual fiscal rule—a structural balance plus a prudential debt anchor set at 45% of GDP—which has been internationally praised, although it faces growing pressures.

In a regional context where most Latin American countries are grappling with mounting fiscal pressures and debt-to-GDP ratios exceeding 60%, both our country and Chile maintain notably moderate and very similar levels of public debt.

Experience in South America shows that macroeconomic stability depends on mechanisms that limit political discretion. Through technical committees and reserve funds, Chile has established a resilient system that can now serve as a roadmap for Paraguay’s economic safeguards.

In this third installment of the series “Constitutional Safeguards for Fiscal Stability in Paraguay,” we examine a case that marked a turning point in Latin America: the 1980 Chilean Constitution.

Paraguay ended fiscal year 2025 with an official fiscal deficit of 2.0% of GDP, according to the Central Government Financial Situation Report (Situfin) issued by the Ministry of Economy and Finance (MEF). This amounts to G. 7.48 trillion, equivalent to USD 1.047 billion, the best result since 2019 and an improvement over the 2.5% recorded in 2024.