World Bank Unveils New Strategy to Boost Paraguay's Growth Through 2034

The framework's main priority is creating the conditions needed for sustainable economic growth by improving infrastructure and strengthening essential public services.

The World Bank Group has approved a new Country Partnership Framework (CPF) that will shape its work with Paraguay from 2027 to 2034, placing a strong focus on private sector-led growth, job creation and long-term economic resilience.

The strategy brings together the International Bank for Reconstruction and Development (IBRD), the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) under a unified approach. Together, the three institutions plan to mobilise at least US$2 billion during the first phase of the programme through financing, advisory services, technical expertise and investment guarantees.

The framework supports Paraguay's National Development Plan and is designed to help the country build a more competitive and inclusive economy while attracting greater private investment.

Focus on infrastructure and stronger public services

The framework's main priority is creating the conditions needed for sustainable economic growth by improving infrastructure and strengthening essential public services.

The World Bank Group will support investments that enhance transport connectivity, logistics networks, energy systems and climate resilience. It also plans to help improve healthcare and education, ensuring that skills development is better aligned with labour market demands and future employment opportunities.

World Bank Division Director for Argentina, Paraguay and Uruguay, Peter Siegenthaler, said the new framework marks a fresh chapter in a partnership that has spanned more than 75 years, with the goal of helping Paraguay maintain strong economic growth while creating quality jobs on a larger scale.

Encouraging private investment across key industries

The second pillar of the strategy focuses on increasing productivity by making it easier for businesses to invest and grow.

Efforts will include improving the business environment, expanding access to finance for micro, small and medium-sized enterprises, and supporting women-led businesses with greater financial opportunities. The World Bank Group also plans to mobilise private capital into sectors with strong growth potential, including agribusiness, forestry, renewable energy and manufacturing.

IFC Division Director for Brazil, Argentina, Uruguay and Paraguay, Manuel Reyes Retana said private investment will play a central role in Paraguay's next phase of development. By combining the expertise of IBRD, IFC and MIGA, the partnership seeks to attract new investment, strengthen businesses and increase productivity across the economy.

Building on decades of cooperation

The new Country Partnership Framework builds on more than seven decades of collaboration between Paraguay and the World Bank Group. The institution believes the country's strong economic foundations provide an opportunity to accelerate reforms that expand opportunities for businesses and communities while delivering lasting development benefits.

By combining public sector support with greater private investment, the framework is expected to help Paraguay strengthen economic resilience, create more high-quality jobs and promote sustainable growth through 2034.