
The presidents of Brazil, Luiz Inácio Lula da Silva, and Paraguay, Santiago Peña, agreed on Sunday in Campo Grande to intensify negotiations over Annex C of the Itaipú treaty, the instrument that governs the financial terms and energy sales of the binational hydroelectric dam, one of the largest in the world.

Relations between Paraguay and Germany are at a positive juncture, with prospects for growth in trade, investment and tourism, according to German Deputy Ambassador in Asunción Jörg Herrera, in an interview with state broadcaster Paraguay TV.

Paraguay's President Santiago Peña met on Sunday in Campo Grande, the capital of Brazil's Mato Grosso do Sul state, with business leaders from the state's Federation of Industries (FIEMS) to promote investment opportunities in his country. The meeting, organized at the association's request, brought together representatives from sectors including bioenergy, food, construction and logistics.

Suspected Uruguayan drug trafficker Sebastián Marset was captured on Friday in Santa Cruz de la Sierra, Bolivia, in an operation that ends one of the Southern Cone’s longest and most visible manhunts. Paraguayan authorities confirmed the arrest and said Marset had been secured after a raid carried out by Bolivian forces.

Paraguay’s government has activated intelligence, prevention and financial-control measures in the Tri-Border Area it shares with Argentina and Brazil amid escalating tensions in the Middle East, according to Internal Security Vice Minister Óscar Pereira.

Paraguay’s central bank chief Carlos Carvallo says the country is dealing with a “nice problem”: inflation is converging to the official goal “from below,” an unusual pattern in the region that has prompted policymakers to start trimming interest rates to prevent price growth from staying too low.

European Commission President Ursula von der Leyen on Friday announced the provisional application of the trade part of the EU-Mercosur association agreement, following parliamentary ratification in Argentina and Uruguay. The move activates trade commitments ahead of full conclusion of the treaty, which still requires the European Parliament’s consent.

Paraguay recorded a US$ 162.2 million trade deficit in January after reporting US$ 1.2864 billion in exports and US$ 1.4486 billion in imports, according to the Central Bank of Paraguay’s (BCP) monthly foreign trade report.

Paraguay’s government has rolled out a pair of decrees offering preferential electricity pricing to energy-hungry industries—ranging from AI-linked data centers and cloud computing to green hydrogen and other “Power-to-X” projects—betting that the country’s hydroelectric surplus can be converted into investment and higher-value production. The move, however, has triggered pushback from energy experts and a fast-moving labor dispute inside the state utility ANDE.

From 1960 to 2024, Paraguay posted the highest cumulative GDP expansion in South America, according to calculations published by Forbes Paraguay and Colombia’s La República, drawing on World Bank constant-2015-dollar series. Over that span, Paraguay’s economy rose from roughly US$2.8 billion to about US$46 billion (2015 prices), multiplying more than sixteen-fold.