Paraguay intensifies its strategic alliance with the United States under the management of Santiago Peña. The country seeks to consolidate its economic growth, nicknamed the ‘Guarani tiger’, focusing on military partnerships, exploration of critical minerals and attracting global investment.
What does the nickname ‘Guarani tiger’ given to Paraguay mean?
The term refers to the ‘Asian tigers’, countries that grew very quickly in the 90s. Paraguay received this nickname for having one of the lowest inflation rates in the region, GDP growth estimated at 4% for 2026 and a business environment with few taxes and little bureaucracy, which attracts foreign investors, especially Brazilians.
How can the relationship with Donald Trump benefit the country?
President Santiago Peña has positioned Paraguay as a strategic ally of Trump in South America. The partnership focuses on defense and the supply of critical minerals, such as rare earths — essential materials for manufacturing batteries and high technology. This helps the US become less dependent on China and puts Paraguay in a prominent position in global trade.
What are the details of the new military agreement with the United States?
The Paraguayan government sanctioned a strategic partnership that allows the circulation of American troops and equipment in the country. The objective is to increase surveillance in the Triple Border to combat organized crime. As a gesture of alignment, Paraguay classified criminal factions such as the PCC as terrorist groups, something that the Americans defend.
Are there plans to use energy from the Itaipu plant?
Yes, there are discussions for Paraguayan energy from Itaipu to be used to supply artificial intelligence projects installed in Paraguay itself. This would give a new use to the plant’s electrical production, generating revenue and attracting technology companies, in addition to influencing future negotiations on the plant’s treaty with Brazil.
Why has the number of foreigners living in Paraguay grown so much?
Economic stability and the ease of opening businesses caused residency applications to jump more than 63% in 2025. Brazilians lead this movement, occupying more than half of the permits granted. Furthermore, international tourism almost doubled in one year, driven by neighbors seeking opportunities and leisure in the country.
Content produced based on information gathered by the Gazeta do Povo team of reporters. To access the full information and delve deeper into the topic, read the report below.
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