AGP Executive Report

AI Investment: Paraguay joined the US-led Pax Silica pact, positioning its hydropower and critical minerals to support AI infrastructure. The move builds on major data-center plans: HIVE says it has invested more than $250 million in Paraguayan sites, while Crusoe and Araico plan a 106 MW AI facility near Itaipú, with room to expand. Financial Oversight: The central bank faces calls to resign over its supervision of politically connected ueno bank, a dispute testing confidence in the regulator as Paraguay courts foreign capital. Ueno says it is cooperating, and the probe has not established wrongdoing. Manufacturing: Maquila exports topped US$1.14 billion in 2026, as the export-oriented manufacturing sector expanded.

Investment: HIVE Digital says it has invested more than $250 million in Paraguay’s hydro-powered data centers, with 300 MW operating and expansion planned. Separately, Crusoe and local developer Araico plan an AI computing facility near Itaipú, targeting an initial launch in 2027 and potential capacity of 280 MW. Financial Oversight: The central bank faces calls to resign over its supervision of politically connected ueno bank, testing confidence in the regulator and Paraguay’s reputation with foreign investors. The bank says its review follows legal procedures; ueno says it is cooperating. Manufacturing: Maquila exports rose 25% to $1.148 billion in the first nine months of 2026, with the sector employing 36,382 people. Trade and Capital: Treasury Secretary Scott Bessent and President Santiago Peña discussed closer economic ties and secure critical-minerals supply chains. At a recent Asunción investment forum, private-equity specialists also pointed to direct investment in local companies as a key route for capital in a market with a small stock exchange.

U.S. Partnership: Treasury Secretary Scott Bessent met President Santiago Peña to discuss closer economic ties and secure critical-mineral supply chains. Data-Center Investment: HIVE has invested more than $250 million in hydro-powered Paraguay data centers, with 300 MW operating and plans to expand to 400 MW. Crusoe and local developer Araico separately plan an AI facility near Itaipú, targeting a 2027 launch. Banking Oversight: Calls are growing for central bank leaders to resign over supervision of politically connected ueno bank. The bank says the preliminary probe is not a finding of wrongdoing; it reports 3 million customers and manages up to $850 million in public funds. Manufacturing: Maquila exports rose 25% to $1.148 billion in the first nine months of 2026, while the sector employed 36,382 people. Growth Outlook: ECLAC forecasts Paraguay’s economy will expand 4.5% in 2026 and 4.0% in 2027.

AI Investment: Crusoe and Paraguay’s Araico plan an AI computing facility powered by Itaipú hydroelectricity, with an initial deployment targeted for mid-2027 and capacity that could scale to 106 MW, with longer-term expansion options. Manufacturing: Maquila exports reached US$1.148 billion in the first nine months of 2026, up 25% year over year; the sector reported 36,382 jobs, with Mercosur taking 74% of shipments. Financial Sector: Paraguay’s Central Bank faces mounting pressure over doubts about the solvency of some lenders. Trade: A Paraguayan business delegation is in Italy to build commercial links, with opportunities identified in agri-food, wine and tourism. Paraguay is also preparing five international livestock audits to secure and expand meat exports. Agriculture: The country’s coffee market has surpassed US$59 million as local growers revive production.

Trade and Investment: A Paraguayan business mission in Italy is seeking partners and market access, with agri-food, wine and tourism in focus. Organizers say fresh EU-Mercosur prospects add momentum. Financial Oversight: Pressure is mounting on Paraguay’s Central Bank over doubts about some lenders’ solvency. Meat Exports: Paraguay is preparing five international livestock audits to secure and expand export markets. Agriculture: The coffee market has topped US$59 million as local growers revive production. Regional Logistics: Brazil is advancing transport links for agricultural exports, including the Bioceanic Corridor through Paraguay, which could help lower freight costs and improve access to Pacific ports. Air Connectivity: Brazil’s GOL plans to suspend flights between Asunción and Rio de Janeiro, reducing a key link for business and travel.

Regional Logistics: Brazil is advancing rail and multimodal links to cut farm-export costs, including the Bioceanic Corridor through Paraguay to Pacific ports. Separately, two new tugs will carry iron ore on the Paraguay-Paraná waterway, strengthening a key regional freight route. Financial Stability: Pressure is mounting on Paraguay’s Central Bank over concerns about some lenders’ solvency, though details have not been reported. Meat Exports: Paraguay is preparing for five international livestock audits aimed at securing and expanding market access. Global beef exports are forecast to remain nearly flat in 2027, while Paraguay ranks among the top 10 exporters, each of the six smaller players accounting for less than 5% of global shipments. Local Industry: Paraguay’s coffee market has topped US$59 million as domestic growers revive production. Air Links: GOL is set to suspend flights between Asunción and Rio de Janeiro, a setback for business and travel connections.

River Logistics: Wärtsilä will supply engines for two Brazilian tugs carrying iron ore on the Paraguay-Paraná waterway, expanding capacity on a key regional export route. Banking: Doubts about the solvency of some lenders have increased pressure on Paraguay’s Central Bank. Investment: A U.S. delegation led by Deputy Secretary of State Christopher Landau visited Paraguay to discuss security and investment opportunities. Growth: The World Bank raised Paraguay’s 2026 growth forecast to 4.7%, the region’s highest. Coffee: Paraguay’s coffee market topped US$59 million in the year to August, with value up nearly 13%; growers in Canindeyú and Cordillera are seeking to revive local production. Meat Exports: Paraguay is preparing for five international livestock audits aimed at securing and expanding market access. Air Travel: GOL plans to suspend flights between Asunción and Rio de Janeiro, reducing a direct business and tourism link.

US Investment Push: Deputy Secretary of State Christopher Landau began a three-day Paraguay visit with business executives, discussing investment opportunities and closer security ties with President Santiago Peña and Vice President Pedro Alliana. Banking Oversight: The Association of Banks has asked the Central Bank to disclose the solvency of lenders that received support during mergers, as political pressure grows over the regulator’s handling of the sector. Growth Outlook: The World Bank raised Paraguay’s 2026 growth forecast to 4.7%, the highest projection in the region. Trade and Production: Paraguay plans five international livestock audits to secure and expand meat exports, while its coffee market topped US$59 million in sales over the year to August as local growers work to revive production.

U.S. Investment: Deputy Secretary of State Christopher Landau began a three-day visit to Paraguay with U.S. business executives, discussing investment opportunities and stronger bilateral ties with President Santiago Peña. Banking Oversight: Paraguay’s banking association urged the Central Bank to disclose the solvency of lenders that received support during mergers, as concerns grow over bank exposures and the regulator’s response. Coffee Market: Coffee sales topped US$59 million in the year to August, with market value up nearly 13% and volume rising 3%; small growers in Canindeyú and Cordillera are working to revive local production. Growth Outlook: The World Bank raised Paraguay’s 2026 growth forecast to 4.7%, the highest projection in the region. Meat Exports: Paraguay is preparing five international livestock audits to help secure and expand access to export markets.

Banking Oversight: Paraguay’s banking association has asked the Central Bank to disclose the solvency of lenders that received support during mergers, as concerns grow over possible preferential treatment and exposure to related companies. Coffee Market: Coffee sales reached about US$59 million in the year to August, with market value up nearly 13% and volume rising 3%; local growers are working to revive production. Air Links: GOL will suspend its Asunción–Rio de Janeiro route from February 2027, citing weak demand and higher fuel costs. Growth and Exports: The World Bank raised Paraguay’s 2026 growth forecast to 4.7%, the region’s highest, while the country plans five livestock audits to protect and expand meat exports.

Banking Oversight: Paraguay’s banking association has asked the Central Bank to disclose the solvency of lenders that received merger-related support, as senators press President Santiago Peña to replace the bank’s leadership. Digital Finance: Peanut is testing a digital-dollar wallet and payment card in Paraguay, targeting newcomers and crypto users, though it is not designed mainly for people paid in guaraníes. Flood Disruption: El Niño-driven river rises have forced evacuations in Paraguay and disrupted daily life and local economies. Air Links: GOL plans to suspend its Asunción–Rio de Janeiro route from February 2027, citing weak demand and higher fuel costs. Exports: Paraguay plans five international livestock audits to secure and expand meat exports, and has completed its first watermelon shipment to Uruguay. Growth Outlook: The World Bank raised Paraguay’s 2026 growth forecast to 4.7%, the highest in the region.

Digital Finance: Peanut is testing a digital-dollar wallet and payment card in Paraguay, aimed mainly at newcomers, digital nomads and crypto users rather than residents paid in guaraníes. Flood Disruption: El Niño-linked river flooding has displaced families in Paraguay and affected daily and economic life, with about 1,500 families evacuated in Alto Paraná and Ñeembucú. Air Links: GOL plans to suspend its Asunción–Rio de Janeiro route from February 2027, citing weak demand and rising fuel costs. Growth Outlook: The World Bank raised Paraguay’s 2026 growth forecast to 4.7%, the highest in the region. Meat Exports: Paraguay is preparing for five international livestock audits to help secure and expand meat exports. Trade: The country completed its first watermelon shipment to Uruguay, opening a new export route. Infrastructure: Early works on Asunción’s commuter rail project are expected in the first half of 2027. Credit: Paraguay’s housing market continues to face a gap between mortgage access and affordability.

Flood Emergency: El Niño-driven Paraná River flooding has displaced families in Paraguay, with about 1,500 households evacuated in Alto Paraná and Ñeembucú and roughly 2,000 people affected in Ayolas, disrupting local livelihoods. Air Connectivity: GOL will suspend its Asunción–Rio de Janeiro route from February 2027, citing weak passenger demand and higher fuel costs. Meat Exports: Paraguay faces five international livestock audits from October to December; the reviews will shape plant approvals and access to key markets including the EU, Taiwan and Chile. Growth Outlook: The World Bank raised Paraguay’s 2026 growth forecast to 4.7%, the highest in the region. Trade: Paraguay has completed its first watermelon export to Uruguay, opening a new outlet for local producers.

Flood Disruption: El Niño-linked Paraná flooding has displaced about 1,500 families in Alto Paraná and Ñeembucú, with roughly 2,000 people affected in Ayolas, disrupting livelihoods and local activity. Air Links: GOL will suspend its Asunción–Rio de Janeiro route from February 2027, citing weak demand and rising fuel costs; the service launched in January. Meat Exports: Auditors from Chile, Taiwan, the EU, Egypt and Peru will inspect Paraguay’s livestock sector through December. Their findings could affect access to key markets. Growth Outlook: The World Bank raised Paraguay’s 2026 growth forecast to 4.7%, the region’s highest. Trade & Investment: Paraguay has made its first watermelon export to Uruguay, while the 2026 Rally of Paraguay generated more than US$209 million in economic impact.

Meat Exports: Paraguay faces five audits through December by Chile, Taiwan, the EU, Egypt and Peru. Inspectors will assess sanitary controls and meat plants, with results shaping export approvals and market access. Flooding: El Niño-driven rains have swollen the Paraná and other rivers, flooding parts of Paraguay and forcing residents to evacuate and ranchers to move cattle to higher ground. Growth Outlook: The World Bank raised Paraguay’s 2026 growth forecast to 4.7%, the highest in the region. Global Finance: Central Bank Governor Carlos Carvallo Spalding completed his term chairing the World Bank and IMF Boards of Governors; Pakistan will take over in 2027. Trade and Tourism: Paraguay shipped watermelons to Uruguay for the first time, while the 2026 WRC Rally of Paraguay generated an estimated US$209 million in economic impact.

Growth Outlook: The World Bank raised Paraguay’s 2026 growth forecast to 4.7%, the region’s highest, underscoring the country’s strong economic momentum. Meat Exports: Five audits by Chile, Taiwan, the EU, Egypt and Peru from October to December will assess sanitary standards and export approvals, with results shaping access to key markets. Trade and Investment: China sanctioned Paraguay’s communications minister over ties with Taiwan as a proposed 10-megawatt AI computing center remains under technical review. Tourism: FITPAR opened in Asunción, with organizers expecting more than 10,000 visitors and 600-plus brands; the fair also features business meetings.