Paraguay: Lessons on Growth, jobs, and poverty reduction from Latin America

Over the last 20 years, poverty in Paraguay has dropped from over 50% to just 16% in 2025, with 300,000 people rising out of poverty in the last two years. Employment and labor income growth were the primary drivers of this poverty reduction, with gains concentrated at the bottom of the income scale. The country has also strengthened its regulatory framework to encourage job creation and modernized its maquila regime to broaden the base for job creation.