Paraguay scored 65.2 points in the 2025 Economic Freedom Index (ILE), ranking 59th globally and 11th among 32 South American countries. This is according to a report released by the U.S.-based Heritage Foundation, which analyzed that Paraguay's fiscal stability, trade openness, and efforts to attract foreign investment received positive evaluations.

César Talavera: "Low Tax Burden and Easy Business Operations"

César Talavera, head of the Paraguayan Development Research Institute 'Patria Soñada,' stated, "Paraguay has a low tax burden and an easy business operating environment, and is also making efforts to control inflation and public spending."

Remaining Challenges in Labor Freedom and Rule of Law Improvement

However, the Heritage Foundation pointed out that improvements are needed in Paraguay's labor freedom and rule of law sectors. In particular, property rights protection, the legitimacy of the judicial system, and government integrity are considered important factors for economic development. Talavera emphasized, "Related institutions must function transparently and professionally, and strive not to be corrupted by private interests."

Need for Economic Diversification and Industrialization Efforts

Furthermore, Paraguay must also strive for economic diversification and raw material industrialization. Talavera said, "There is already a growing awareness in the production and business sectors about the importance of not only exporting raw materials but also exporting processed products, and developing innovation and technology."

Paraguay Rated as 'Moderately Free Economy'

Paraguay rose by 5.1 points in this evaluation, surpassing both the regional average (59.4 points) and the global average (59.7 points), and was classified as a 'Moderately Free Economy' country.

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