Paraguay, officially known as the Republic of Paraguay, is a landlocked country in South America. It shares borders with Argentina to the south and southwest, and Brazil to the east. With a population of approximately 7.4 million people, Paraguay covers an area of 406,796 square kilometers. The country is known for its sound and predictable macroeconomic foundations, solid financial system, and poverty reduction policies, contributing to its remarkable economic growth and social inclusion. Over the last two decades, Paraguay has experienced significant economic expansion thanks to favorable terms of trade and robust macroeconomic policies, including inflation-targeting mechanisms and fiscal responsibility legislation. However, recent challenges, such as climate conditions affecting agricultural and hydropower exports, and the impact of the COVID-19 pandemic, have dampened its growth. Despite these setbacks, Paraguay’s economy is projected to rebound by 4.8% in 2023. Nevertheless, the country still faces various challenges, including high vulnerability to climate change and strengthening governance, regulations, and human capital and infrastructure investments.