Country Profile: Paraguay
Paraguay, situated in Central South America, is a landlocked country bordered by Argentina, Bolivia, and Brazil. The nation is primarily characterized by its subtropical to temperate climate, vast grassy plains, and a significant portion of its population residing in the eastern half. With a diverse economy that heavily relies on agriculture, Paraguay has made strides in hydropower production while facing challenges like corruption and income inequality. The country operates as a presidential republic, with a history of military rule followed by an ongoing commitment to democratic governance since 1989.
Geography
Paraguay is located in the heart of South America, bordered by Argentina to the south and southwest, Bolivia to the northwest, and Brazil to the east and northeast. The total area of the country is approximately 406,752 sq km, with the eastern part featuring grassy plains and wooded hills while the western Gran Chaco region remains sparsely populated. Its landlocked status means it has no coastlines, which impacts its transportation and trade logistics.
- 4,655 km of land borders shared with Argentina, Bolivia, and Brazil
- 39.3% of territory is forested (2022)
- 42% of land is used for agriculture (2022)
People and Society
As of 2024, Paraguay has an estimated population of 7,522,549, predominantly comprised of Mestizo individuals (95%). The country is a bilingual nation with Spanish and Guarani as its official languages, reflecting its cultural heritage. The population is predominantly Roman Catholic, with a life expectancy at birth of 78.8 years and a total fertility rate of 1.88 children born/woman.
- 63.1% of the population is urbanized (2023)
- 22% of the population is aged 0-14 years
- 1.09% annual population growth rate (2024)
Economy
Paraguay's economy is categorized as upper middle-income, with a heavy reliance on agriculture and a reputation as a global leader in hydroelectricity. Major agricultural products include soybeans and beef. The real GDP is projected at $112.919 billion in 2024, reflecting a growth rate of 4.2% while grappling with issues such as corruption and significant income inequality.
- $16,300 GDP per capita (2024 est.)
- 6.1% unemployment rate (2024)
- 24.7% of the population lives below the poverty line (2022)
Government
Paraguay is a presidential republic with a government led by President Santiago Peña Palacios since August 15, 2023. The country has a bicameral Congress composed of the Chamber of Deputies and the Senate, with elections held every five years. The legal system is based on civil law, influenced by various legal traditions.
- Last election date: 30 April 2023
- Citizenship by birth is guaranteed
- 18 years is the minimum voting age, with compulsory voting until age 75
Military and Security
The Armed Forces of Paraguay consist of the Army, Navy, and Air Force. Military service is compulsory for men at age 18, with a service obligation of 12 months for the Army and 24 months for the Navy. Military expenditures account for 0.8% of GDP as of 2024.
- Approximately 15,000 active-duty personnel (2025)
- The military supports both defense and internal security roles
- The Paraguayan military has a legacy of cooperation with neighboring countries on security issues
Energy
Paraguay is recognized for its nearly complete reliance on hydropower for electricity, accounting for 99.4% of its installed generating capacity. The country has achieved universal electricity access, with 100% of the population connected as of 2022, and is geared toward improving its renewable energy resources.
- 8.928 million kW of installed capacity (2023)
- 14.835 billion kWh of electricity consumed (2023)
- 24.202 billion kWh of electricity exported (2023)
Environment
Paraguay faces several environmental challenges, including deforestation and water pollution. The country is involved in various international environmental agreements focusing on biodiversity and climate change. Agricultural land occupies a significant portion of its territory, impacting land use patterns and environmental sustainability.
- 42% of land used for agriculture (2022)
- Participates in multiple international environmental agreements
- 387.77 billion cubic meters of total renewable water resources (2020 est.)
Transportation
Transportation infrastructure includes 83 airports and limited railway length, primarily servicing internal needs. Paraguay's merchant marine is notable, consisting of 108 vessels, primarily involved in cargo shipping.
- 30 km of total railway (2014)
- 1 main port: Puerto de Asuncion
- 206,000 fixed telephone subscriptions (2023)
Communications
Telecommunications in Paraguay are growing, with a significant proportion of the population having access to mobile services and the internet. Approximately 78% of the population are internet users, reflecting advancements in communication technologies.
- 8.67 million mobile cellular subscriptions (2023)
- 878,000 broadband subscriptions (2023)
- 206,000 fixed-line subscriber connections (2023)
Key Metrics
| Metric | Value | Note |
|---|---|---|
| Population | 7,522,549 | 2024 estimate |
| Area (total) | 406,752 sq km | |
| GDP (PPP) | $112.919 billion | 2024 estimate |
| GDP per capita | $16,300 | 2024 estimate |
| Unemployment rate | 6.1% | 2024 estimate |
| Population below poverty line | 24.7% | 2022 estimate |
| Life expectancy at birth | 78.8 years | 2024 estimate |
| Total fertility rate | 1.88 children/woman | 2024 estimate |
| Percentage of urban population | 63.1% | 2023 estimate |
| Electricity access | 100% | 2022 estimate |
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