Country Profile: Paraguay

Paraguay is a landlocked country in central South America, bordered by Argentina, Bolivia, and Brazil. With a population estimated at over 7.6 million, it features a diverse culture shaped by its indigenous roots and colonial history. The economy is primarily agrarian, significant in hydroelectricity production, yet faces issues like corruption and income inequality. Since transitioning to democracy in 1989, Paraguay has maintained a presidential republic governance structure, regularly holding elections.

Geography

Paraguay is situated in the heart of South America, with a total area of approximately 406,752 sq km, making it about three times the size of New York State. The country is characterized by grassy plains, wooded hills, and the Gran Chaco region, which is largely uninhabited despite covering 60% of its territory. Paraguay experiences a subtropical climate, with notable rainfall in the eastern regions and semiarid conditions to the west.

Total land boundaries: 4,655 km (with Argentina, Bolivia, and Brazil)
Natural resources include: hydropower, timber, iron ore, manganese, limestone
Major rivers: Río de la Plata/Paraná and the Paraguay River
Elevation: Highest point at Cerro Pero 842 m; lowest point at 46 m
Population distribution: Concentrated in the eastern half, with only 2% living in the Gran Chaco

People and Society

Paraguay has a total estimated population of 7,604,044 as of 2025, with a demographic primarily composed of 95% Mestizo (mixed Spanish and Indigenous ancestry). The country recognizes both Spanish and Guarani as official languages, reflecting its rich cultural heritage. The predominant religion is Roman Catholicism, while a growing number of Protestant denominations also exist.

Median age: 32.3 years (2025 est.)
Urban population: 63.1% (2023)
Literacy rate: 94.9% (2024)
Life expectancy: 78.8 years (2024)
Birth rate: 15.66 births/1,000 population (2025 est.)

Economy

Paraguay's economy is classified as upper-middle-income, driven largely by agriculture and hydroelectric power, particularly the Itaipu Dam, which is among the largest in the world. However, the economy faces significant challenges, including corruption and income disparity. The GDP as of 2024 is estimated at $112.919 billion (PPP), with a growth rate of 4.2% projected.

GDP per capita: $16,300 (2024 est.)
Unemployment rate: 6.1% (2024 est.)
Population below poverty line: 24.7% (2022 est.)
Exports: $17.395 billion (2024 est.)
Key agricultural products: soybeans, beef, corn, and sugarcane

Government

The Republic of Paraguay operates as a presidential republic, with a democratic system that has been in place since the end of Alfredo Stroessner's dictatorship in 1989. The capital is Asunción, and the government is composed of an executive branch headed by President Santiago Peña Palacios, elected in April 2023. Paraguay has a bicameral Congress comprising the Chamber of Deputies and the Senate.

Independence Date: 14-15 May 1811
Next presidential election: April 2028
Administrative divisions: 17 departments and 1 capital city
Legal system: civil law influenced by Argentine and Spanish models

Military and Security

Paraguay's military forces are composed of the Army, Navy, and Air Force, with a total of approximately 15,000 active duty personnel as of 2025. Military expenditures account for 0.8% of GDP. The military plays a crucial role in national defense as well as in domestic security operations against criminal organizations.

Military service age: 18-25 years for both genders
Military inventory predominantly composed of older equipment from various suppliers
Role in peacekeeping: Participates in UN missions

Energy

Paraguay is a leader in hydroelectric power, with an installed generating capacity of 8.928 million kW as of 2023, primarily from hydroelectric sources which constitute 99.4% of its capacity. The country has achieved 100% electrification for its population.

Electricity consumption: 14.835 billion kWh (2023 est.)
Energy consumption per capita: 25.733 million Btu (2023 est.)
Petroleum production: 2,000 bbl/day (2023 est.)

Environment

Paraguay faces environmental challenges including deforestation, water pollution, and waste disposal issues. As a party to multiple international environmental agreements, including the Paris Agreement, the country is actively working on conservation and sustainable development measures.

Total renewable water resources: 387.77 billion cubic meters (2022 est.)
Annual municipal waste generated: 1.819 million tons (2024 est.)
Urban population: 63.1% live in urban areas (2023)

Transportation

Paraguay has a modest transportation infrastructure, including 83 airports and a small railway system of 30 km. Its ports are primarily focused on the Paraguay River, and the country has a merchant marine fleet of 108 vessels.

Civil aircraft registration: ZP
Total railways: 30 km (standard gauge)
Ports: 1 (small)

Communications

Telecommunication services in Paraguay are growing, with a significant proportion of the population using mobile phones and the internet. As of 2023, 78% of the population are internet users, and there are 8.67 million mobile cellular subscriptions.

Fixed-line telephone subscriptions: 206,000 (2023)
Broadband fixed subscriptions: 878,000 (2023)

Key Metrics

Metric	Value	Note
Population	7,604,044 (2025 est.)	Estimated
Area	406,752 sq km	Total land area
GDP (PPP)	$112.919 billion (2024 est.)	Purchasing power parity
Unemployment Rate	6.1% (2024 est.)	Percentage of labor force
Birth Rate	15.66 births/1,000 population (2025 est.)	Annual birth rate
Life Expectancy	78.8 years (2024 est.)	Average lifespan
Gini Index	44.4 (2023 est.)	Income inequality measure
Electricity Access	100% (2022 est.)	Electrification rate
Urban Population	63.1% (2023)	Urbanization rate
Total Renewable Water Resources	387.77 billion cubic meters (2022 est.)	Water resource availability