Country Profile: Paraguay

Paraguay is a landlocked nation located in central South America, bordered by Argentina, Bolivia, and Brazil. The country is home to approximately 7.6 million people, with a diverse cultural heritage primarily rooted in the Guarani and Spanish influences. Paraguay's economy is classified as upper middle-income and is significantly agrarian, with a focus on hydroelectric power production, particularly from the Itaipu Dam, which is one of the world's largest. The governance system is a presidential republic, having transitioned towards democracy in the late 20th century after a long period of military dictatorship.

Geography

Paraguay covers an area of 406,752 square kilometers, roughly three times the size of New York State, and is characterized by grassy plains and wooded hills. The country is divided by the Paraguay River, with the Gran Chaco region making up 60% of the land but containing only 2% of the population. The climate is predominantly subtropical to temperate, with substantial rainfall in the east and arid conditions in the west.

60% of the territory is the Gran Chaco, but only 2% of the population resides there.
54.1% of the land is used for agriculture.
The highest point is Cerro Pero, at 842 m above sea level.
No coastline as it is a landlocked country.

People and Society

As of 2025, Paraguay's population is estimated at 7,604,044, with a majority identifying as Mestizo. The population exhibits a high degree of bilingualism with Spanish and Guarani as official languages. The urban population accounts for 63.1% of the total, concentrated mainly in the eastern half of the country, particularly in the capital, Asunción.

78.8 years is the life expectancy at birth for the total population.
94.9% literacy rate as of 2024.
15.66 births per 1,000 population (2025 est.).
80.4% of the population identifies as Roman Catholic.

Economy

Paraguay has a diverse economy driven by agriculture, with significant contributions from the manufacturing and services sectors. It is a major producer of soybeans and beef, and also benefits from substantial hydroelectric power exports. The GDP in 2023 is estimated at $108.316 billion, illustrating recovery from prior economic challenges.

6.1% unemployment rate (2024 est.).
24.7% of the population lives below the poverty line (2022 est.).
10.7% of GDP contributed by agriculture (2024 est.).
$16,300 real GDP per capita (2024 est.).

Government

Paraguay operates as a presidential republic with a legal system influenced by various civil law models. As of August 2023, the current president is Santiago Peña Palacios, elected for a single five-year term. The country has a bicameral legislature comprised of the Chamber of Deputies and the Senate, and citizens have the right to vote at the age of 18, with compulsory voting laws in place until age 75.

The Constitution was last amended in 1992.
17 departments plus the capital, Asunción.
Citizenship can be acquired by birth or descent.

Military and Security

The Paraguayan Armed Forces consist of the Army, Navy, and Air Force, with a focus on both national defense and domestic security. Military service is compulsory for men ages 18-25, while defense spending is approximately 0.8% of GDP. The military also collaborates with police forces to address internal security issues.

15,000 active duty personnel (2025).
The military has not engaged in conflict with a neighboring country since the Chaco War in the 1930s.

Energy

Paraguay is known for its hydroelectric resources, producing 99.4% of its electricity from hydroelectric power, particularly from the Itaipu Dam. The country has achieved 100% electrification as of 2022, a significant milestone in energy access.

Total electricity consumption in 2023 is 14.835 billion kWh.
8.928 million kW of installed capacity (2023 est.).

Environment

Environmental concerns in Paraguay include deforestation and water pollution, largely stemming from agricultural practices. The country is proactive in international environmental agreements related to biodiversity and climate change, but faces challenges with waste and pollution management.

54.1% of the land is agricultural, impacting local ecosystems.
Annual CO2 emissions are reported at 7.509 million metric tonnes (2023 est.).

Transportation

Paraguay has a developing transportation infrastructure with 83 airports and limited railway usage. The country relies heavily on road transport, and Asunción is the key port for river transport, being strategically located along the Paraguay River.

30 km of railways operate in standard gauge as of 2014.
108 merchant marine vessels as of 2023.

Communications

As of 2023, communication access is robust, with about 78% of the population using the Internet. Mobile cellular subscriptions have reached approximately 8.67 million, demonstrating the growing integration of digital technology in everyday life.

206,000 fixed-line telephone subscribers (2023).
13% of the population have fixed broadband subscriptions.

Key Metrics

Metric	Value	Note
Population	7,604,044	Estimated for 2025
Area	406,752 sq km
GDP (PPP)	$112.919 billion	Estimate for 2024
Energy Consumption	25.733 million Btu/person	Estimate for 2023
Birth Rate	15.66 births/1,000 population	Estimated for 2025
Unemployment Rate	6.1%	Estimated for 2024
Literacy Rate	94.9%	Estimate for 2024
Life Expectancy	78.8 years	Estimate for 2024
Urban Population	63.1%	Total population in urban areas (2023)
Military Expenditures	0.8% of GDP	Estimated for 2024