Find out why Moody's is giving Paraguay's economy a major boost!

Paraguay’s Economic Surge: Moody’s Boosts Rating to ‘Investment Grade’

In a significant development, credit rating agency Moody’s recently upgraded Paraguay’s rating to “investment grade,” marking a pivotal moment for the country’s economic landscape. This upgrade comes on the heels of Paraguay’s impressive economic growth, signaling positive prospects for both government and private sector access to credit.

Key Points Regarding the Rating Upgrade:

Enhanced Recognition: The shift to investment grade status is a testament to Paraguay’s robust and sustained economic growth trajectory. This recognition serves as a stepping stone towards further sustainable development for the nation.
Positive Outlook: Moody’s cited various factors contributing to the rating upgrade, including Paraguay’s resilience to economic shocks and the expectation of continued strong economic growth. This stable outlook is bolstered by ongoing investments in crucial infrastructure projects, both public and private.
Presidential Perspective: Paraguayan President, Santiago Peña, welcomed the rating upgrade as a significant milestone that will improve the country’s financing conditions. He highlighted the consistent efforts made over decades to transform the economy and strengthen institutional frameworks, positioning Paraguay as an attractive investment destination.
Economic Evolution: Peña recounted the challenges faced by Paraguay in the past, such as financial crises and high inflation, which spurred the need for significant reforms. The strategic measures implemented since the 1990s have laid the foundation for macroeconomic stability and fiscal reforms, leading to sustained economic growth.
Growth Trajectory: With a 4.7% growth rate in 2023 and a projected expansion of 3.8% for the current year, Paraguay’s economy continues to show resilience, particularly in sectors like agriculture. These positive indicators, coupled with fiscal reforms, have contributed to the upward trend in credit ratings.

Closing Perspective:

The recent rating upgrade by Moody’s underscores Paraguay’s economic potential and paves the way for increased investment opportunities. As the country solidifies its position on the global economic stage, there is a clear message of progress and stability. This positive momentum sets the foundation for continued growth and development in Paraguay’s economic landscape.