GDP growth clashes with the household budget gap
Average statistics mask the severe budgetary constraints faced by households. The true success of a public policy is not measured by the volume of exports, but by the supply chain’s ability to respond to people’s immediate needs in the store.
Latin America's economic saga: Low growth and high uncertainty in 2026
Latin America has lived through a long economic odyssey marked by cycles of boom and bust, with recurring promises of transformation that have not kept pace with the progress the region needs.
High deficit, costly bureaucracy. A large budget, a slow government
El proyecto de Presupuesto General de la Nación para 2027 vuelve a exponer una tensión estructural: un Estado voluminoso en gasto agregado y débil en rendimiento institucional. El documento enviado al Congreso asciende a G. 166,3 billones, unos 25.700 millones de dólares al tipo de cambio presupuestado de G. 6.458 y cerca de 27.000 millones […]
High levels of informality limit progress toward greater social mobility
In a tin-roofed warehouse in Caaguazú, Rosa wraps up her day using the same calculation she’s used for the past eleven years. She sewed forty-eight school uniforms, collected payment in cash, paid her assistant under the table, and stashed the leftover money in a cookie jar.
Distortions that stifle our country's potential
For our economy to truly grow, we don't need to raise taxes. We need to remove artificial barriers and make the system fairer and more inclusive for everyone.
The cost of formal employment stifles business productivity
En el taller de metalúrgica en San Lorenzo, un operario llamado Marcos sostiene el mismo puesto desde hace once años. Su salario cubre la canasta básica, pero no alcanza para la capacitación de su hijo de diecisiete ni para un crédito hipotecario. La empresa opera con márgenes estrechos porque el costo total de cada trabajador […]
From the low-growth trap to the opportunities of the 21st century
Latin America is stuck in what the United Nations' Economic Commission for Latin America and the Caribbean, known as ECLAC, calls a "low-growth-capacity trap."
Why Does Paraguay Need Comprehensive Tax Reform Today?
Paraguay boasts one of the most competitive tax systems in Latin America thanks to the “Triple 10”: 10% VAT, 10% income tax on individuals (IRE), and 10% corporate income tax (IRP). However, the current tax structure suffers from distortions that limit its potential, resulting in high levels of informality and a tax base fragmented by exemptions.
Dual production structure dampens the actual impact of growth
Despite GDP growth and a decline in poverty to 16 percent, high levels of informal employment (62.5 percent) and low productivity prevent this economic boom from reaching household budgets. The concentrated agro-export model hinders improvements in real income for most households.
Paraguay 2030: The Window of Opportunity That the Markets Have Already Opened
The investment-grade rating achieved by Paraguay is neither a trophy to display on a desk nor a point of arrival. In market terms, it is a paradigm shift that gives us approximately five years of tailwind.
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