Doing Business in Paraguay: Market Entry, GTM Strategy & Growth Potential

The population of Paraguay is 7,095,280, and is growing at the rate of 1.15%. The GDP per capita, which represents the potential spending power of the people, is $23,349, measured on a purchasing power parity (PPP) basis to allow comparison with other countries.

70.91% of Paraguay’s population lives in urban areas. 61.41% of the population is of working age (15-59). 85.36% of the population has internet access and 0% has 5G mobile coverage. These factors are important for digital-first businesses to keep in mind.

The Accuracast International Growth Index ranks Paraguay #77 overall for market attractiveness,  rising 2 places over the past year.

How we can help you grow in Paraguay:

Accuracast offers a comprehensive range of international digital marketing services to support brands looking to grow their presence in Paraguay. Whether you need an international SEO agency, an international advertising agency, or an international social media marketing agency specialising in Paraguay, we’ve got you covered.

How Digitally Mature is the Market in Paraguay

The digital search demand score for Paraguay is 35.43.

Paraguay is becoming an increasingly digital market, but online search behaviour is not yet as mature as in many of the world’s leading digital economies. Lower search demand means that companies cannot rely on SEO alone to generate rapid awareness and should consider combining search with paid social, video, influencers, partnerships and other channels to build demand.

Internet access reaches more than 85% of the population, giving digital-first businesses a substantial addressable audience. However, Paraguay remains a relatively small market, so companies should assess the potential lifetime value of customers carefully before making significant local investment.

Go-To-Market Strategy Considerations for Paraguay

The purchasing power score for Paraguay is 59.43, and the country scores 62.87 for digital readiness.

Paraguay offers a relatively attractive combination of economic stability, growing consumer demand and improving digital infrastructure.

Paraguay’s economy is particularly distinctive because of its strong agricultural and energy base. The country is a major exporter of soybeans, beef and other agricultural commodities, while its large hydropower resources provide abundant renewable electricity. These characteristics create opportunities for businesses connected to agriculture, food production, logistics, manufacturing, energy, financial services and B2B technology.

For consumer businesses, Asunción should generally be treated as the initial priority market. It offers the country’s greatest concentration of consumers, businesses, purchasing power and digital activity. International brands can then use performance data from Asunción to assess whether wider national expansion is justified.

Financial & payment infrastructure

In terms of financial infrastructure, Paraguay scores 66.67.

Paraguay’s payments infrastructure is developing rapidly and increasingly supports digital-first commerce, especially via QR payments. Customers routinely make payments using QR codes across different financial institutions and electronic wallets.

Regulatory & business setup friction

From a business expansion point of view, Paraguay scores 55.38 for regulatory complexity and legal restrictions. This is reverse-scored, meaning the higher the score, the easier it is to navigate local regulation.

Paraguay is generally considered an open economy and the government highlights relatively low tax rates, competitive energy costs, a young workforce and macroeconomic stability as advantages for international investors.

For companies that manufacture in Paraguay or use the country as an export base, the picture can be considerably more attractive as local production for export is subject to a low tax regime.

This makes Paraguay particularly interesting not only as a consumer market, but also as a potential regional production and export base for suitable businesses.

The score of 42.31 indicates the costs and friction associated with setting up a business presence in Paraguay.

Paraguay benefits from an extraordinary amount of low-cost hydropower relative to its population. Those advantages naturally will attract energy-intensive and export-led companies, for which set up costs will be incidental to the advantages gained from being based in the country.

Paraguay market attractiveness change

Compared to last year, the overall International Growth Index score for Paraguay has changed 1.19 points, moving the country 2 places higher from 2025, to rank #77 in 2026.

Paraguay is particularly attractive for:

• Agriculture, food, logistics and supply-chain businesses
• Energy-intensive businesses that can benefit from abundant renewable electricity
• Manufacturing and export businesses
• Fintech, payments and digital financial services companies.

These type of companies will view Paraguay as an obvious option for market entry.

Most Popular Social Media Platforms in Paraguay:

1. WhatsApp
2. YouTube
3. Facebook
4. Instagram
5. TikTok
6. Pinterest
7. Reddit
8. LinkedIn

Spanish should be the primary language for most consumer-facing digital marketing in Paraguay, while Guaraní is also an official language and has an important cultural role. In sectors or with audiences where Guaraní has particular relevance, culturally appropriate bilingual communication may provide an advantage.

English is spoken comfortably by 5-10% of the population, and those that speak it have a moderate level of proficiency.

What Are the Risks of Expanding into Paraguay

While new market expansion can be exciting, it is important to also consider the risks when entering a market like Paraguay.

The main risk with an expansion in Paraguay is the limited market scale and relatively low search demand.

How Does Paraguay Compare to Other Top Markets?