Análisis estratégico sobre institucionalidad, economía y desarrollo publicados en medios especializados.
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.
The Treaty of Itaipu was signed on April 26, 1973, in Brasília with the aim of harnessing the water resources of the Paraná River for the production of electricity.
Attracting foreign investment through privatization
The National Constitution of the Republic of Paraguay, enacted on June 20, 1992, represents a milestone in the transition to democracy following decades of authoritarian rule. However, when it comes to fiscal governance, it is notably silent on the matter, a fact that has shaped the country’s economic trajectory.
In previous columns, I have argued that the high cost of capital in Latin America is primarily due to political risk and weak institutions. Brazil, the region’s largest economy, is one of the clearest examples.
Architect of Latin American economic development.
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