Paraguay’s Manufacturing Moment

Hey guys, Mikkel here,

One of the things I’ve learned over the years throughout my decades of experience is that investment decisions aren’t solely made by looking at balance sheets, expected yields, or graphs…

…they’re made by looking at what a country is building, where the growth is showing up, and how that momentum can compound into long-term prosperity. 

When you pay attention to the sectors that are expanding, the policies that support them, and the hard numbers behind the headlines, you start to see where the smart money will be moving next. 

…and right now, Paraguay’s manufacturing surge is one of those signals that are showing significant promise. 

This manufacturing surge is the kind of signal that strengthens Paraguay’s entire economy… and by extension, strengthens the case for planting your own flag here, whether that means investing here, securing residency, or, in the case of people like us, both.

In today’s edition of Paraguay Potential, we’ll dive deeper into what this growth means for the country, why it matters to you as an investor (or soon-to-be investor), and we’ll also (believe it or not), discuss how even Canada is beginning to recognize the opportunity that lies within strengthening relationships with the Mercosur trading bloc.

…Canada is doing something smart… I know, shocking. But hey, credit where credit is due. 

So today, we’re going to dive into both signals:

• Paraguay’s manufacturing surge and why it matters for the country… and for you as an investor.
  

• And Canada’s rare moment of clarity, and what it signals about where the smart partnerships are shifting.

Whether you’re actively placing capital offshore, researching Plan-B jurisdictions, or simply curious about the deeper forces reshaping South America’s most under-appreciated and overlooked growth market, this edition of Paraguay Potential is a must-read for you.

Ok, let’s get into it, folks, 

Paraguay’s Manufacturing Surge: The Implications Beyond The Numbers

In August, Paraguay’s manufacturing sector didn’t just have a good month… it posted the largest export month in its history.

$127 million (USD) worth of physical product shipped abroad…

…in 30 days.

That’s a 24% increase year-over-year.

…and it didn’t come from luck or a single big order. 

It’s not about one company catching lightning in a bottle and landing one massive purchase order. 

It’s about an entire industry shifting into higher gear.

…and it can all be traced back to an economic system that’s building strength, bolstering its international reputation and as a result, landing international contracts that were once reserved for manufacturing powerhouses. 

Now, when you break this down, three major implications stand out, offering significant benefits to people like us who are early in positioning ourselves in Paraguay.

Each one certainly matters on its own; however, together, they have massively positive implications for the country as a whole. 

More Exports = More Currency Inbound

Cash matters, and right now, Paraguay is flush with it. 

More cash means less vulnerability when global markets wobble (which we are certainly seeing at the moment). 

It means more stability in the local currency, the Guaraní, because it’s backed by real inflows of the very currency the world still very much runs on (USD).

…and as a result of Paraguay’s manufacturing output, dollars are flowing in faster than they’re flowing out.

For investors, stability is the foundation of an investable country.  

A country bleeding dollars is desperate, whereas a country stacking them shows confidence, and thus, institutional investors have the rightful gumption to continue to back the country's growth via infrastructure investments and other hard-money growth-unlocking developments.

You see, good money follows good money, and that is exactly what is happening right now. 

That means a net positive balance, exports outpacing imports, which strengthens the foundation of the local economy. 

When a country has more hard currency on hand, it’s less vulnerable to shocks, better positioned to service debt, and more attractive to outside capital.

For investors, this is the green light you wait for. 

You don’t want to be in a place that bleeds dollars or produces/exports nothing to the world.   

You want to be in the one where foreign currency is piling up, where the trade numbers are in your favour and where every new deal increases stability.

Now, if Paraguay were just serving one major trade partner, and its growth was built solely on the back of geographical proximity, I wouldn’t be so excited about this development; however, this is not the case. 

The bulk of exports (82%) goes straight into Mercosur markets (Brazil, Argentina, Uruguay and Chile). 

Those are built-in, geographically close demand centers, tied together by trade agreements and geographical proximity. 

…but it doesn’t stop there.

Paraguay is also pushing into global markets that have historically been more risk-averse when it comes to working with “developing nations”. 

The United States and the Netherlands each account for just over 8% of all of Paraguay’s manufacturing exports. 

That might sound small, but it’s the foothold that tells you bigger things are coming. 

Once you can prove quality, reliability, and pricing to the U.S. or EU markets, scaling becomes much easier.

So here’s what it means: Paraguay isn’t just pulling in more hard currency - it’s pulling it in from a mix of stable, high-demand destinations. 

That diversifies risk, cushions against local shocks, and builds credibility in the markets that matter most.

For you as an investor, that’s stability squared: stable inflows, stable buyers.

More Factories = More Jobs

Today, nearly 36,000 people are employed directly in Paraguay’s manufacturing sector.

…nearly 7,000 more people are directly employed in the manufacturing segment than there were last year. 

Think about that - that’s nearly 7,000 more families that rely on this system for their paychecks.

That is nearly 7,000 families who now have stable, secure, long-term jobs in a rapidly expanding industry.

That is nearly 7,000 families who know their jobs are secure, and thus, they are here for the long-term… thus have the confidence to invest in a new home.

Every job offers more stability in various markets.  

Every paycheque means more spending power that is dumped right back into the market.

…and every job has a material impact on the local economy, which again, benefits every single one of us who has already allocated capital into Paraguay. 

If you’re thinking “7,000 new jobs doesn’t sound like a huge deal”, you need to keep in mind that we’re talking about 7,000 new jobs within a single sector of the economy…

… a sector of the economy which isn’t even the country’s largest economic driver, I must add (agriculture & energy production are).

Couple this with the fact that Paraguay is a small country with a population of just over 7 million, and all of a sudden, these 7,000 new jobs carry considerably more significance.

I get it, folks, economic data doesn’t always feel real.

A 0.3% increase in GDP sounds foreign and can be difficult to break down into “dollars and sense”, but jobs do.

Today, there are nearly 36,000 families who can eat, send their kids to school, go out to restaurants, and have a roof over their heads, all thanks to the fact that Paraguay is a producer of hard goods. 

Every one of those jobs is a paycheck that ripples outward - supporting families, fueling local businesses, and strengthening communities. 

Factories don’t open their doors on a whim.

Companies don’t hire hundreds of workers unless they see demand in the pipeline.

Job growth is proof of long-term commitments, capital investment, and real output.

…and Paraguay isn’t slowing down…

 A record 36 new manufacturing programs were approved with backing in 2024, with another 20 already approved for 2025. 

That means more factories are coming online, more workers will be hired, and more goods will be shipped in the months ahead.

When you see jobs growing at this pace, you’re looking at the foundation of a middle class being built in real time. 

…and when a middle class takes root, consumer demand expands, systems stabilize, and investor confidence compounds.

That’s the cycle you want to get in front of if you want to be gobbling up the biggest returns.

More Diversification = More Stability

In fragile or small economies, growth is usually a one-trick pony. 

One crop, one commodity… one sector drives the whole show. 

If that market collapses, the country goes with it.

Paraguay’s manufacturing sector is different.

Auto parts. Textiles. Aluminum. Food. Plastics. Chemicals.

That means multiple industries are moving up at the same time.

That matters because it makes the entire system harder to knock off course. 

If one sector slows down, another is there to pick up the slack. 

Diversification is the difference between a short-lived boom that fizzles away during an economic downturn and a boom that remains rock-solid despite one.

It’s easy to skim this information and think, “hmm, that’s interesting.” 

…but if you stop there, you miss the point.

Allow me to simplify things:

If the auto sector cools, chemicals can pick up the slack. 

If textiles face a global downturn, food or aluminum fills the gap.

That’s economic resilience. 

In smaller or fragile economies, growth usually hangs in a single sector…

…and when that sector sneezes, the whole country catches a cold.

When that happens, the entire economy suffers.

The fallout can be vicious, and for investors, it can be the difference between their tenants having to choose between putting food on their table and paying their rent.

Not here. 

If one industry slows, others keep the system balanced.

For us investors with a keen focus on the real estate housing market, this is exceptionally reassuring news. 

The Implications

Put all this together, and what you see is not just “good news.”

You see a country reaching escape velocity.

If you’ve been sitting on the sidelines waiting for a macro signal that Paraguay is ready for serious investment, this is it.

You don’t get many moments where all three signals line up at once to create such a strong underlying financial base - where the numbers, the policies, and the human output all point in the same direction. 

…but that’s exactly what’s happening right now.

When a country posts its biggest export month ever, grows exports 24% year-over-year, widens the gap between imports and exports, ramps up factory approvals, and spreads its bets across multiple industries, this isn’t just interesting news to chalk away in the back of your brain…

It’s an investable insight that should have you running to position yourself here.  

Smart money doesn’t wait until this becomes common knowledge.

It moves when the signals are flashing green, like they are in Paraguay right now.

Canada and Mercosur: A RARE Win… but don’t be fooled

I’ll give credit where it’s due, and as surprising as it is, this week Canada actually did something smart. 

Ottawa has reopened talks for a free-trade agreement with Mercosur, the South American bloc that includes full members such as Brazil, Argentina, Uruguay, and, of course, our dear Paraguay. 

In reality, this is one of the only good moves Canada has made lately. 

Expanding trade ties with a region that produces beef, soy, minerals, and manufactured goods is a smart strategy… especially as the U.S. turns more protectionist and unpredictable. 

Paraguay, in particular, will benefit because it has one of the most pro-business governments in the bloc.

So yes, this is a net positive for Paraguay. 

It means another market, more legitimacy, and more room for exporters to grow.

It’s a global validation and is proof that the world is starting to notice. 

When Canada, one of the most archaic slow-moving governments in the G7, decides it needs a trade deal with Mercosur, it’s because the growth in this region is too obvious to ignore.

For Paraguay, that means more buyers, more inflows, and more opportunities to attract investment from partners outside its standard trade partners.

It strengthens its hand in Mercosur negotiations, raises its global profile, and funnels more dollars into its already healthy balance sheets.

Every new buyer reduces risk and creates leverage.

…however,  no matter how good the deal looks on the outside, Canada will find a way to tax the life out of any profits you make. 

That’s what Ottawa does. 

They’ll negotiate free trade with one hand while reaching into your pocket with the other.

For Canadians who have their lives tied to the Canadian system, it doesn’t change the reality at home: you are still living under a system that punishes productivity, overtaxes capital, and treats savers as a piggy bank.

Yes, you’ll hear politicians spin this as “Canada building stronger trade ties with the Global South.” 

…but what they won’t mention is what happens once profits start flowing.

Because in Canada, the second you make money, Ottawa comes knocking.

• Earn more? Higher marginal tax.
  

• Invest abroad? Foreign income reporting and tax drag.
  

• Build a nest egg? Inflation and currency debasement eat it up.

Plus, right now, Canada is still overly dependent on the U.S. for trade, which means one deal will change nothing.  

Ottawa can sign as many trade agreements as it likes, but the structure of the system guarantees the outcome will always be the same.

So even if a Canadian company does well in Paraguay under Mercosur rules, Ottawa will siphon off its share before you see the benefit. 

And that’s why I say: don’t be fooled.

One free trade agreement does not change the trajectory of a country that has spent decades punishing productivity and eroding its middle class.

That’s why I keep saying… if you’ve been thinking about getting out, don’t wait for “one good policy” to convince you the system is turning around.

It’s not. 

The damage is already done, and one trade pact won’t undo it.

Paraguay is opening doors. 

Canada is closing them. 

The choice is yours.

If you want to learn more about getting set up with residency in Paraguay, my team at Expat Money can help. You can learn more about securing your residency in Paraguay by clicking this link here: LEARN ABOUT SECURING RESIDENCY IN PARAGUAY.

If you’ve been thinking about getting out, don’t let this news lull you into believing the tide is turning. 

It’s not. 

Canada’s problems are structural, and one free trade deal won’t change that.

The choice, as always, is yours.

I’d highly advise all of you reading this (especially Canadians like myself) to visit this page here.  

Deal of The Week: A Call To The Community

I have discussed this project with you guys a few times over the past 6 or so weeks, and for good reason.

This project is transformational and is set to refine the standard of commercial office spaces in Ciudad del Este.

…yes, I am talking about the HUB.8. 

HUB.8 was designed with a full suite of amenities that set it apart from anything else in Ciudad del Este: dedicated co-working zones, high-tech conference spaces, world-class dining options, leisure and wellness areas, and, of course, the rooftop sky lounge that will be the premier networking spot in the city.

The robust amenities were strategically planned to attract the best companies that are serious about having a presence in or expanding their operations within Ciudad del Este.

The businesses that move into HUB.8 will be those who need a base of operations that signals to clients and competitors alike that they are operating at the highest level, while simultaneously creating a work environment that is favourable to its employees.  

For multinationals and high-end tenants, these amenities are not “nice-to-haves”…  they are critical differentiators in attracting and retaining top talent.

While the rest of the market is still stuck in 2010-era construction with no amenities, HUB.8 redefines the standard. For the first time, businesses in Ciudad del Este will have a place that signals professionalism and credibility to both clients and employees.

This is the building that will set the standard for commercial real estate in Ciudad del Este, and investors who secure a position here will reap serious benefits for the years or even decades to come (depending on when you want to exit your position).

Now, this week, I have an interesting offer…

…one that would that would mean the entire 6th floor of the HUB 8. 

There are only six units remaining on the 6th floor, and if history is any guide, I am certain that someone from our community will step up to secure them.

If all six units are taken by members of the Expat Money community - people like you who read Paraguay Potential, who think the way we think, and who are building for the same reasons… then the entire 6th floor becomes a community-owned asset.

…and that changes the game entirely.

Think about it:

• Every single unit on the floor could be professionally managed by Green Parana on behalf of our community, ensuring consistency, efficiency, and a clean, turnkey experience for tenants. Instead of fragmented ownership with conflicting strategies, you’d have a unified management approach driving long-term value.
  

• We can negotiate collectively with larger clients. Instead of one-off contracts for individual units, the entire floor could be packaged and presented to serious tenants - law firms, financial services, tech companies, and manufacturing back offices who want a professional presence in the heart of Ciudad del Este. The difference between negotiating as a single landlord vs. as part of a coordinated whole is night and day. With collective ownership, the bargaining power of every investor goes up.
  

• You’d have like-minded neighbours instead of strangers. Imagine a client coming to tour a space, needing more than one office, and instead of being told “sorry, those belong to someone else,” the answer is “let me discuss with the other owners and see if we can put something together for you.” That’s an opportunity to keep business inside the community, which ultimately benefits everyone on the floor.

… and folks, this isn’t an all-or-nothing proposition.

Would it be the most efficient outcome if one buyer stepped in and secured all six units in one go?

Absolutely.

But this isn’t black and white.

If you want two of the remaining units, we can make that happen.

If you want five, we can make that happen as well.

The point is, every unit that gets purchased by someone in our circle brings us closer to full ownership… and full ownership creates a unique dynamic for all of us as owners on the 6th floor of this incredible development. 

This is where community strength shows up in real, practical ways. 

It’s not just about owning a unit… it’s about being part of something bigger, something that multiplies your options, increases your leverage, and ensures your investment isn’t just a line item on a spreadsheet, but a piece of a strategy that benefits everyone involved.

The 6th floor is on the verge of becoming exactly that.

The only question is whether you’ll be one of the people shaping it.

So, what we have today is roughly 125 square meters of premium, Class-A office space in a building with luxury amenities, fully titled for a total of $300,000 USD. 

This is what we mean when we say Paraguay is still “hidden in plain sight.” 

You’re buying premium, first-world-quality commercial space at emerging-market prices… and locking in a cost that was only still available in most of Latin America years ago. 

Opportunities like this don’t sit on the table forever. 

The investors in our community who understand what it means to buy a dollar for fifty cents will be the ones who walk away with outsized returns when the world catches on.

This is an off-market, club-deal exclusively available to the Expat Money and Paraguay Potential communities.

As an insider, you are getting the exclusive invitation to join the earliest access at the lowest prices in a project that is set to revolutionize how businesses operate in Paraguay.

Whether you want one, two, three, four, five or even all six of the remaining units on the 6th floor, you need to go ahead and send Fernando an email right away at [email protected] to get the ball rolling.

…and you need to do so quickly, because Fernando is fielding calls every single day from people fighting to get inside the HUB.8, and if you want to be the one to close out the 6th floor and keep this floor completely under our control, you can’t afford to wait.

Speak soon,
Mikkel