Paraguay

Paraguay: steady but modest growth, 1980–2025

A largely agricultural economy centered on soy and beef exports and hydroelectric power (shared with Brazil at the Itaipu Dam), Paraguay has grown steadily but remains one of South America's poorest countries per capita. Between 1980 and 2025, Paraguay's GDP per capita grew from $1,457 to $7,027 (current US$), a compound annual growth rate of 3.6% — steady but modest growth. Annual GDP growth averaged 3.6% with a year-to-year standard deviation of 3.4 points, reflecting relatively stable macroeconomic conditions. Structurally, agriculture's share of the economy moved from 29.5% to 11.6% of GDP (a classic decline as the economy industrialized/modernized), while services rose from 39.9% to 48.1% of GDP, underscoring a shift toward a services-driven economy. On human development, life expectancy rose from 64.6 to 74.0 years, while tertiary school enrollment moved from 9.4% to 37.6%, while the urban population share grew from 41.4% to 70.4%.

What this growth cost: Growth was not without cost: per-capita CO2 emissions rose from 0.49 to 1.16 tonnes CO2e per person; income inequality (Gini index) widened from 40.8 to 44.2; the poverty headcount ratio fell from 2.5% to 2.1%.