Country Risk Rating

B
Political and economic uncertainties and an occasionally difficult business environment can affect corporate payment behavior. Corporate default probability is appreciable. - Source: Coface
A1A2A3A4BCDEVery Low RiskAcceptable RiskVery High Risk

Business Climate Rating

B
The business environment is mediocre. The availability and the reliability of corporate financial information vary widely. Debt collection can sometimes be difficult. The institutional framework has a few troublesome weaknesses. Intercompany transactions run appreciable risks in the unstable, largely inefficient environments rated B.
A1A2A3A4BCDEVery Low RiskAcceptable RiskVery High Risk

Strengths

  • Well-developed agricultural sector (soybeans and beef)
  • Abundant hydroelectric resources and forest potential conducive to green energy production
  • Prudent fiscal and monetary policies

Weaknesses

  • Dependency on the agricultural sector and a handful of trading partners (Brazil and Argentina)
  • Vulnerability to climatic conditions
  • Significant informal market (40% of GDP), smuggling with Argentina
  • Low fiscal resources (17% of GDP)
  • Weak governance (corruption and cronyism)
  • Poor infrastructure (waterways, roads, power lines)
  • Deficient health and education services

Current Trends

Source:

Coface (03/2024)
Paraguay