Country Profile: Paraguay

Paraguay is a landlocked country located in central South America, bordered by Argentina, Bolivia, and Brazil. It has a population of approximately 7.6 million, with a predominantly Mestizo ethnic composition. The nation features a growing economy primarily driven by agriculture and hydropower production, amid challenges like corruption and significant income inequality. Governed as a presidential republic, Paraguay has experienced democratic governance since 1989, following a lengthy military dictatorship.

Geography

Paraguay is situated between Argentina to the south, Bolivia to the northwest, and Brazil to the east. The country covers an area of 406,752 square kilometers, characterized by grassy plains and wooded hills in the eastern regions, while the western part consists of the Gran Chaco, a semi-arid lowland plain. Paraguay's climate ranges from subtropical to temperate, with substantial rainfall in the east and dryer conditions in the west.

406,752 sq km: Total land area
0 km: Paraguay's coastline (landlocked)
4,655 km: Total land boundaries with neighboring countries
60%: The Gran Chaco region accounts for this percentage of Paraguay's territory, holding only 2% of the population.

People and Society

Paraguay has an estimated population of 7,604,044 as of 2025, with a majority identifying as Mestizo (95%). The nation is officially bilingual, with Spanish and Guarani spoken widely. Urbanization is significant, as 63.1% of the population resides in urban areas, especially in the capital, Asunción, which has about 3.5 million residents.

63.1%: Urban population (2023)
94.9%: Literacy rate (2024)
15.66 births per 1,000 population (2025)
22.2%: Population aged 0-14 years (2024 estimate)

Economy

As an upper-middle-income economy, Paraguay is a significant player in the global hydroelectric power sector and depends heavily on agriculture for its economic output. The GDP is estimated at $112.919 billion in 2024, with a strong emphasis on soybean and beef production. However, the economy also grapples with issues such as corruption and income inequality.

4.2%: Projected real GDP growth rate (2024)
$16,300: Real GDP per capita (2024)
10.7%: Agriculture's contribution to the GDP (2024)
24.7%: Population living below the poverty line (2022)

Government

Paraguay operates as a presidential republic, with a constitution that has been in effect since 1992. The government is divided into three branches: executive, legislative, and judicial. The president is both the head of state and government, currently held by Santiago Peña Palacios since August 2023.

17: Number of administrative departments
80: Seats in the lower house of Congress (Chamber of Deputies)
45: Seats in the upper house of Congress (Senate)
18: Minimum voting age, with compulsory voting until 75 years of age

Military and Security

The Paraguayan Armed Forces comprise the Army, Navy, and Air Force, with approximately 15,000 active personnel. Military spending stands at 0.8% of GDP, focusing primarily on external defense and internal security, including combating domestic threats from groups such as the Paraguayan People’s Army (EPP).

0.8%: Military expenditures relative to GDP (2024)
18-25 years: Age range required for military service
15,000: Active military personnel (2025)

Energy

Paraguay is renowned for its reliance on hydroelectric power, generating 99.4% of its electricity from this source. The country enjoys full electrification, with an installed capacity of 8.928 million kW as of 2023.

100%: Electrification rate (2022)
14.835 billion kWh: Electricity consumption (2023)
24.202 billion kWh: Electricity exports (2023)

Environment

Environmental challenges in Paraguay include deforestation, water pollution, and inadequate waste disposal systems. The nation has actively participated in multiple international environmental agreements, reflecting its commitment to environmental sustainability.

54.1%: Land used for agriculture (2023)
36.9%: Forest cover (2023)
7.509 million metric tonnes: CO2 emissions (2023)

Transportation

Paraguay's transportation infrastructure includes a network of 83 airports and a limited railway system totaling 30 km. The country has a small merchant marine fleet, indicating its reliance on ports for trade.

108: Total merchant ships (2023)
1: Key port, Puerto de Asuncion
83: Airports (2025)

Communications

Paraguay has seen significant growth in communications, with 78% of the population using the internet and a proliferation of mobile subscriptions. The country maintains a mix of private and public media outlets.

8.67 million: Mobile cellular subscriptions (2023)
206,000: Fixed-line telephone subscriptions (2023)
878,000: Fixed broadband subscriptions (2023)

Key Metrics

Metric	Value	Note
Population	7,604,044 (2025 est.)
Area	406,752 sq km
GDP	$112.919 billion (2024 est.)
Energy Consumption	14.835 billion kWh (2023)
Birth Rate	15.66 births/1,000 population (2025)
Unemployment Rate	6.1% (2024 est.)
Literacy Rate	94.9% (2024 est.)
Urban Population	63.1% of total population (2023)
Military Expenditures	0.8% of GDP (2024)
Electric Capacity	8.928 million kW (2023)