Country Profile: Paraguay

Paraguay, a landlocked country in central South America, exhibits a diverse geography characterized by grassy plains and wooded hills, particularly concentrated in its eastern region. With a population exceeding 7.6 million, Paraguay is predominantly Mestizo, with Spanish and Guarani as the official languages. The country’s economy is largely agrarian, with significant contributions from hydroelectric power, placing it among the global leaders in this sector. Since its return to democracy in 1989, Paraguay has maintained a presidential republic governance structure, which facilitates democratic elections and active citizen participation.

Geography

Paraguay is located in central South America, bordered by Argentina to the south and southwest, Bolivia to the northwest, and Brazil to the east and northeast. The country features a diverse terrain, including grassy plains in the eastern part and the Gran Chaco region, which is primarily a low, marshy plain. Paraguay has no coastline, being entirely landlocked, and its climate ranges from subtropical to temperate with significant rainfall in the east.

Total Area: 406,752 sq km, about three times the size of New York State.
Land Boundaries: 4,655 km with Argentina (2,531 km), Bolivia (753 km), and Brazil (1,371 km).
Mean Elevation: 178 m above sea level.
Natural Resources: Includes hydropower, timber, and minerals like iron ore and limestone.
Population Distribution: Approximately 60% of the country's land territory is the Gran Chaco, which only hosts 2% of its population.

People and Society

Paraguay's population stands at an estimated 7.6 million people, with a significant majority identifying as Mestizo. The country is known for its bilingualism, with both Spanish and Guarani recognized as official languages. Urbanization is on the rise, with 63.1% of the population living in urban areas. The nation is predominantly Roman Catholic, with a rich cultural heritage that reflects its indigenous roots.

Ethnic Composition: 95% Mestizo, 5% other ethnicities.
Urban Population: 63.1% as of 2023.
Life Expectancy: 78.8 years as of 2024.
Literacy Rate: 94.9% for the total population in 2024.
Median Age: 32.3 years as of 2025.

Economy

Paraguay is classified as an upper middle-income economy, heavily reliant on agriculture and hydroelectricity. The economy has faced challenges, including a COVID-19 pandemic setback and persistent issues related to corruption and inequality. Despite these challenges, it shows signs of recovery with expected growth rates.

GDP (PPP): Estimated at $112.919 billion for 2024.
Real GDP Growth Rate: Projected at 4.2% for 2024.
Unemployment Rate: Estimated at 6.1% for 2024.
Poverty Rate: 24.7% of the population living below the poverty line as of 2022.
Major Exports: Soybeans, electricity, and beef, primarily directed to Argentina (33%) and Brazil (25%).

Government

Paraguay operates as a presidential republic, where the President serves as both the head of state and government. The country has a bicameral Congress, and elections are held regularly. The most recent presidential election took place in April 2023, resulting in the election of Santiago Peña Palacios.

Capital: Asunción.
Executive: President Santiago Peña, elected for a single 5-year term.
Latest Constitution: Promulgated on 20 June 1992.
Voting Age: Universal suffrage at 18 years old.
Political Parties: Includes the National Republican Association (Colorado Party) and the Authentic Radical Liberal Party.

Military and Security

Paraguay’s military forces comprise an army, navy, and air force, with military service mandatory for men aged 18-25. The country’s military focuses on defense and domestic security, cooperating with police and other organizations to combat organized crime.

Active Personnel: Approximately 15,000 in the Armed Forces as of 2025.
Military Expenditure: 0.8% of GDP for 2024.
Military Service Age: Compulsory for men aged 18-25.
Military Equipment: Mainly older equipment with some recent acquisitions.
Recent Military Conflicts: No wars with neighboring countries since the Chaco War in the 1930s.

Energy

Paraguay is a global leader in hydroelectric power, producing nearly all of its electricity from hydroelectric sources. The country has achieved full electricity access for its population.

Electrification Rate: 100% of the population as of 2022.
Electricity Generation Capacity: 8.928 million kW as of 2023.
Consumption Level: 14.835 billion kWh in 2023.
Exports of Electricity: 24.202 billion kWh in 2023.
Hydroelectric Share: 99.4% of total installed electricity capacity.

Environment

Paraguay faces several environmental challenges, including deforestation and water pollution, leading to a degradation of its natural resources. The country participates in multiple international environmental agreements aimed at addressing these issues.

Deforestation Issues: Significant loss of forest cover due to agricultural expansion.
Water Pollution: Ongoing concerns about water quality in rivers and streams.
Recycling Rate: Approximately 18.1% of municipal solid waste was recycled in 2022.
Carbon Dioxide Emissions: Estimated at 7.509 million metric tonnes in 2023.
International Agreements: Signatory to multiple environmental protocols, including the Paris Agreement.

Transportation

Paraguay’s transportation infrastructure includes a limited railway system and several airports, facilitating both domestic and international travel.

Total Airports: 83 as of 2025.
Merchant Marine: Comprises 108 vessels.
Road Length: Limited rail system of 30 km (standard gauge).
Ports: One main port at Puerto de Asuncion.
Heliports: 29 operational heliports as of 2025.

Communications

Communications in Paraguay are growing, with substantial mobile and internet penetration reflecting improved access to technology.

Mobile Subscriptions: Approximately 8.67 million as of 2023.
Internet Users: 78% of the population are internet users as of 2023.
Fixed-line Telephones: Total of 206,000 subscriptions in 2023.
Broadband Subscriptions: 878,000 fixed broadband subscribers in 2023.
Broadcast Media: Includes 6 privately owned TV stations and about 75 radio stations.

Key Metrics

Metric	Value	Note
Population	7,604,044 (2025 est.)
Area	406,752 sq km
GDP (PPP)	$112.919 billion (2024 est.)
Unemployment Rate	6.1% (2024 est.)
Life Expectancy	78.8 years (2024 est.)
Literacy Rate	94.9% (2024 est.)
Poverty Rate	24.7% (2022 est.)
Electricity Access	100% (2022 est.)
Total Exports	$17.395 billion (2024 est.)
Carbon Dioxide Emissions	7.509 million metric tonnes (2023 est.)