Recent GDP Growth Performance and Investment Signaling in Paraguay: A Short-Term Complement to Institutional Competitiveness

This research note analyzes Paraguay’s recent GDP growth performance in a regional context and discusses its role as a short-term investment signal. Using quarterly national accounts data for the third quarter of 2025, the paper shows that Paraguay exhibits the highest GDP growth rates in South America, both in interannual and accumulated terms. While long-term institutional and macroeconomic stability remains the core determinant of foreign direct investment attractiveness, short-term growth dynamics may reinforce investor confidence and expectations. The note complements existing structural analyses by providing updated empirical evidence on Paraguay’s macroeconomic momentum and its potential signaling effects for foreign investment decisions.