Country Profile: Paraguay

Paraguay, located in central South America, is bordered by Argentina to the south and southwest, Brazil to the east and northeast, and Bolivia to the northwest. The country has a population of approximately 7.6 million people, predominantly of Mestizo descent, and enjoys a diverse mix of cultures and languages, primarily Spanish and Guarani. Paraguay's economy is characterized as upper middle-income, driven largely by agriculture and hydroelectric power, but faces challenges such as corruption and income inequality. It operates as a presidential republic, having transitioned to democracy after decades of military rule, and has maintained a stable political environment with regular elections since 1989.

Geography

Paraguay is a landlocked nation with a total area of 406,752 sq km, slightly smaller than California. Its geography includes grassy plains and wooded hills in the east, while the western Gran Chaco is mostly a low, marshy plain with some dry forest areas. The country experiences a subtropical to temperate climate, with substantial rainfall in the eastern regions.

4,655 km of land borders with Argentina, Bolivia, and Brazil.
The highest point is Cerro Pero at 842 m.
54.1% of land is used for agriculture (2023 estimate).
Major rivers include the Río de la Plata/Paraná, extending 4,880 km.

People and Society

Paraguay has a population of approximately 7.6 million (2025 estimate), with 95% identifying as Mestizo. The country is predominantly Roman Catholic (80.4%) and has a median age of 32.3 years. Urbanization is on the rise, with 63.1% of the population living in urban areas as of 2023.

94.9% literacy rate (2024 estimate).
22.2% of the population is aged 0-14 years (2024 estimate).
1.06% population growth (2025 estimate).
15.66 births/1,000 population birth rate (2025 estimate).

Economy

Paraguay's economy is marked as upper middle-income, with significant contributions from agriculture, particularly soybeans and beef. In 2024, real GDP (purchasing power parity) is estimated at $112.919 billion, while GDP per capita is projected to be $16,300. The country is a global leader in hydroelectric power, which accounts for a significant share of its energy production.

10.7% of GDP comes from agriculture (2024 estimate).
6.1% unemployment rate (2024 estimate).
24.7% of the population lives below the poverty line (2022 estimate).
$17.395 billion in exports (2024 estimate).

Government

Paraguay operates as a presidential republic with universal suffrage for citizens aged 18 and older. The Executive branch is headed by President Santiago Peña Palacios, elected in April 2023. The Constitution, promulgated in 1992, underpins the rule of law in the nation.

17 departments and 1 capital city: Asunción.
Legislative body consists of a bicameral Congress.
Citizens are allowed dual citizenship.
Next presidential election is expected in April 2028.

Military and Security

The Armed Forces of Paraguay include the Army, Navy, and Air Force, with approximately 15,000 active duty personnel. Military expenditures are around 0.8% of GDP (2024 estimate) and the military plays a role in both external defense and internal security operations.

Mandatory military service for men aged 18-25.
The military cooperates with police on domestic security issues, especially against narcotics traffickers.
The military has engaged in UN peacekeeping missions.

Energy

Paraguay has achieved 100% electrification for its population and is a prominent hydroelectric power producer, with 99.4% of its electricity generated from this source. Total energy consumption per capita is estimated at 25.733 million Btu/person for 2023.

8.928 million kW of installed electricity generating capacity (2023).
Daily petroleum production stands at 2,000 bbl (2023).
14.835 billion kWh electricity consumption (2023).

Environment

Environmental challenges in Paraguay include deforestation, water pollution, and inadequate waste disposal. The country is actively participating in international environmental agreements, including the Paris Agreement and the Kyoto Protocol.

54.1% of land is used for agriculture (2023).
7.509 million metric tonnes of CO2 emissions (2023).
Approximately 18.1% of municipal solid waste is recycled (2022).

Transportation

Paraguay has a diverse transportation network, including 83 airports and a limited railway system of 30 km. The civil aircraft registration prefix is ZP, and it maintains a small merchant marine fleet of 108 vessels.

1 main port: Puerto de Asuncion.
29 heliports in operation (2025).

Communications

Communications infrastructure in Paraguay features significant mobile cellular and internet usage, with 8.67 million mobile subscriptions as of 2023. About 78% of the population uses the internet.

206,000 fixed-line telephone subscriptions.
878,000 fixed broadband subscriptions (2023).

Key Metrics

Metric	Value	Note
Population	7,604,044	Estimated for 2025
Area	406,752 sq km	Total area
GDP (PPP)	$112.919 billion	Estimated for 2024
GDP per capita (PPP)	$16,300	Estimated for 2024
Unemployment Rate	6.1%	Estimated for 2024
Birth Rate	15.66 births/1,000	Estimated for 2025
Literacy Rate	94.9%	Estimated for 2024
Life Expectancy	78.8 years	Estimated for 2024
Urban Population Percentage	63.1%	Total urban population in 2023
Agricultural Land Percentage	54.1%	Estimated for 2023