
Paraguay’s government has activated intelligence, prevention and financial-control measures in the Tri-Border Area it shares with Argentina and Brazil amid escalating tensions in the Middle East, according to Internal Security Vice Minister Óscar Pereira.
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Paraguay’s central bank chief Carlos Carvallo says the country is dealing with a “nice problem”: inflation is converging to the official goal “from below,” an unusual pattern in the region that has prompted policymakers to start trimming interest rates to prevent price growth from staying too low.
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European Commission President Ursula von der Leyen on Friday announced the provisional application of the trade part of the EU-Mercosur association agreement, following parliamentary ratification in Argentina and Uruguay. The move activates trade commitments ahead of full conclusion of the treaty, which still requires the European Parliament’s consent.

Paraguay recorded a US$ 162.2 million trade deficit in January after reporting US$ 1.2864 billion in exports and US$ 1.4486 billion in imports, according to the Central Bank of Paraguay’s (BCP) monthly foreign trade report.

Paraguay’s government has rolled out a pair of decrees offering preferential electricity pricing to energy-hungry industries—ranging from AI-linked data centers and cloud computing to green hydrogen and other “Power-to-X” projects—betting that the country’s hydroelectric surplus can be converted into investment and higher-value production. The move, however, has triggered pushback from energy experts and a fast-moving labor dispute inside the state utility ANDE.

From 1960 to 2024, Paraguay posted the highest cumulative GDP expansion in South America, according to calculations published by Forbes Paraguay and Colombia’s La República, drawing on World Bank constant-2015-dollar series. Over that span, Paraguay’s economy rose from roughly US$2.8 billion to about US$46 billion (2015 prices), multiplying more than sixteen-fold.

The European Union and South America’s Mercosur bloc signed their long-negotiated association and free trade agreement on Saturday in Paraguay, with Argentina’s President Javier Milei attending the ceremony and Brazil’s Luiz Inácio Lula da Silva absent, represented instead by his foreign minister.

On January 17, 2026, the Mercosur bloc and the European Union (EU) will formalize a comprehensive association and free trade agreement in Asunción, Paraguay, marking the culmination of nearly 26 years of negotiations, according to international and regional news outlets.

Brazil has enacted two laws formalizing the transfer of military aircraft and equipment to Uruguay and Paraguay, as part of an initiative to upgrade operational capabilities of neighboring countries and enhance regional security, Agência Brasil reported.

The Paraguayan Medical Circle (CPM) has issued a formal demand for strict linguistic competency requirements for all foreign medical students. The guild insists that non-native speakers must obtain official certifications in Spanish and Guaraní as a prerequisite for enrollment and clinical practice.