Fitch Upgrade Watch: Paraguay inched closer to investment grade as Fitch affirmed BB+ with a positive outlook, citing strong growth, lower public debt, and improving inflation—plus seven hurdles Paraguay must clear next. Central American Food Safety: South Korea will host Latin American food-safety officials, including Paraguay, to tighten import safeguards and boost exports of Korean food. Currency Update: Paraguay’s central bank unveiled redesigned guaraní banknotes (all six denominations), with a gradual rollout planned for early 2027 while older notes stay valid. Regional Security Diplomacy: The U.S. and nine partner countries, including Paraguay, issued a joint statement condemning Iran-linked “terrorist actions” and pledged tighter coordination. Women in Politics: A Philippine commission urged a rapid government referral pathway to respond to violence against women in politics. Sports Governance Fallout: FIFA’s handling of DR Congo’s ineligible player case is back in the spotlight after reports say officials knew of the eligibility breach but allowed the team to continue. Asunción Culture: German Week 2026 is underway in Asunción and San Lorenzo, running through Oct. 14 with free public events.
AGP Executive Report
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Paraguay Credit Watch: Fitch affirmed Paraguay at BB+ with a positive outlook, citing strong growth, falling inflation, and lower public debt—keeping the country one step from investment grade. Currency Update: The Banco Central del Paraguay unveiled a redesigned guaraní banknote family (all six denominations), with new security features and themes tied to national history and biodiversity; rollout starts in Q1 2027. Regional Security: The U.S. and nine Latin American partners, including Paraguay, jointly condemned Iranian “terrorist actions” and proxy operations across the Western Hemisphere, pledging tighter coordination. World Bank Outlook: The World Bank projected 2.1% growth for Latin America this year and highlighted Paraguay among stronger performers, while warning risks from energy shocks and El Niño. Diplomacy & Ties: Paraguay is listed among Taiwan’s remaining regional partners, as UN-focused efforts continue to keep Taiwan engaged internationally. Culture in Asunción: German Week 2026 is underway in Asunción and San Lorenzo, running until Oct. 14, with public events including Oktoberfest-style programming.
Asunción Municipal Power Shift: Civil engineer Soledad Núñez won Asunción’s mayor race for the opposition “Alianza Juntos Por Asunción,” ending the Colorado Party’s control since 2019, with preliminary results showing 47.78% for Núñez versus 45.98% for Colorado’s Camilo Pérez; the win is being read as a major political signal ahead of 2028. Second City Watch: In Ciudad del Este, Yo Creo’s Dani Mujica also took the mayoralty decisively (72.83%) over the Colorado candidate (23.8%), with results still subject to formal review. Regional Security Cooperation: The U.S., Canada, Paraguay and other Latin American and Caribbean governments issued a joint declaration accusing Iran and proxies of terrorist and malign operations in the hemisphere, citing a prior U.S.-Paraguay forum to boost law enforcement coordination. Diplomacy & Ties: Taiwan’s shrinking ally circle includes Paraguay, with renewed attention on UN participation efforts by Taiwan’s remaining partners. Tech & Public Administration: A Paraguayan-led AI team won a Best Paper award for trademark classification work tied to an AI-assisted platform for DINAPI, funded via KOICA and FP-UNA.
Asunción Municipal Politics: Civil engineer Soledad Núñez won Asunción’s mayor race, ending Colorado Party control of the capital with about 47.8% vs. Camilo Pérez’s 46% in preliminary results—an early signal for the 2028 political fight. Local Governance Watch: The shift matters because Asunción is Paraguay’s key economic and political hub, and the new administration inherits debt, stalled works, and infrastructure problems. Paraguay Innovation: A Paraguayan-led AI team won a Best Paper Award in South Korea for trademark classification research tied to DINAPI, backed by KOICA and FP-UNA, aiming to speed up and standardize trademark searches. Education & Investment: Universidad Central del Paraguay is pushing a University District in Asunción’s historic center, targeting about US$200M investment and 5,000 foreign students over five years. Culture & Public Life: Paraguay will host the 7th Latin American Folklore Gathering (Oct 6–11) with free public performances across Asunción and nearby cities, bringing artists from 13 countries. International Context: Brazil’s first-round election surprised with Flávio Bolsonaro leading Lula, setting up a run-off Oct 25.
Municipal Elections Watch: Paraguay’s opposition coalition Alianza Juntos Por Asunción won Asunción’s mayor race, with Soledad Núñez taking 47.78% versus Colorado’s Camilo Pérez at 45.98% (99.92% counted), ending Colorado’s control of the capital since 2019; in Ciudad del Este, Yo Creo’s Dani Mujica won 72.83% to 23.8%, a major blow to the ruling party and a key signal ahead of 2028. Regional Politics & Rights Debate: Across Latin America, lawmakers are moving from rhetoric to bills aimed at “false” reports in domestic and sexual violence cases, arguing women-protection laws have gone too far—an issue that could reshape how Paraguay and neighbors handle gender-violence policy and legal safeguards. International Law & Security: A broad coalition of countries reiterated commitment to reinstated UN Security Council resolutions tied to Iran’s nuclear program, underscoring how international legal frameworks keep driving regional security politics. Culture & Heritage in Paraguay: Paraguay will host the 7th Latin American Folklore Gathering (Oct 6–11) across San Lorenzo, Asunción and Fernando de la Mora, with free public performances and artists from 13 countries. Asunción Spotlight: Saint Michael’s Sword will visit Paraguay for the first time in its history starting Oct 8, with a main Mass at Asunción’s Metropolitan Cathedral on Oct 9.
Paraguay–Colombia Friendly: Paraguay edged Colombia 1-0 in New Jersey, with Hugo Benítez scoring after a defensive mistake, as the visitors struggled to create clear chances. Diplomacy & Culture: Paraguay hosts the 7th Latin American Folklore Gathering (Oct 6-11) across San Lorenzo, Asunción and Fernando de la Mora, with free public performances at major venues. Catholic Church: Saint Michael’s Sword arrives from Italy for the first time, with a main Mass in Asunción on Oct 9 and stops including Caacupé and Villarrica. Local Food & Economy: Empanada Day (Oct 4) spotlights national heritage-recognized recipes and the snack’s big business footprint. Sports Calendar: Encarnación will stage Ironman 70.3 on Oct 11, bringing international endurance racing to the Itapúa region. Regional Politics Watch: A new Economist Latinobarómetro survey says favorable views of China are rising across Latin America, including Paraguay, while views of the U.S. decline.
Paraguay–Colombia Friendly: Paraguay beat Colombia 1-0 in New Jersey, with Hugo Benítez scoring after a defensive mistake, as Néstor Lorenzo’s rebuilding side struggled to create chances and adapt its new shape. Regional Diplomacy: The U.S.-backed “Durban” anniversary UN meeting saw Venezuela and Paraguay among the absentees, while Washington and Israel praised non-participation. International Trade & Law: The EU–Mercosur deal faces fresh legal pressure as Brussels suspended parts of Brazilian animal-product imports, adding uncertainty for exporters amid ongoing court challenges. Organized Crime Finance: A regional analysis highlights a shift toward tracing criminal money flows—citing Paraguay links to major networks in the Tri-Border Area as governments move beyond kingpin arrests. Culture & Civic Space in Asunción: Spain’s embassy launched Aires de España (free events across October) and TEDIC opened an all-male panel exhibition questioning who gets visibility as “experts” in public decision-making. Paraguay in Global Mobility: Uruguay ranked high for international passengers per inhabitant, while Paraguay sits lower—an indicator of how infrastructure and logistics shape regional travel access.
Diplomacy & Development: Trinidad and Tobago announced it will open its first Middle East embassy in the UAE, alongside a UAE grant for critical equipment for Couva Children’s Hospital, as part of broader efforts to deepen trade and security ties. Regional Politics & Security: A new Guatemala anti–money laundering overhaul shifts focus toward tracing assets and financial networks tied to organized crime, with the report citing regional FIU coordination and Paraguay’s role in tracking major criminal groups in the Tri-Border Area. Paraguay Economy: Paraguay ended the first half of 2026 with South America’s fastest growth (GDP up 5.7%), led by agriculture and services, though momentum eased in the second quarter. Asunción Civic Life: Banco de Alimentos Paraguay kicks off its 2026 National Food Drive aiming to collect 40 tonnes nationwide with 1,000+ volunteers. Culture & Representation: TEDIC’s “All Male Panel” exhibition opens in Asunción, challenging the absence of women experts in public decision-making spaces. International Mobility: Japan added Paraguay to its ePassport entry list, easing travel for eligible passport holders.
Brazil Election Stakes: Brazilians vote Sunday in a high-stakes test for Donald Trump’s Latin America agenda, with President Luiz Inácio Lula da Silva facing Senator Flávio Bolsonaro, while U.S. pressure over Brazil’s courts and gangs raises the stakes beyond Brasília. Paraguay in the Spotlight: Paraguay beat Colombia 1-0 in a New Jersey friendly, with Hugo Benítez scoring after a defensive error, as the Albirroja held firm despite late pressure. Diplomacy & Regional Ties: Paraguay is among countries listed as eligible to enter Japan with an ePassport, and the broader region keeps trading and aligning through new deals and cooperation frameworks. Local Civic Life: Banco de Alimentos Paraguay launches its National Food Drive in Asunción and across the country, aiming to collect 40 tonnes with 1,000+ volunteers. Asunción Culture & Events: Asunción Fashion Week returns for Resort 2026/27, centering Paraguayan identity, while World Skate Games ASU26 runs 2–18 October across Asunción venues. Economy Watch: Paraguay ends Q3 momentum with strong first-half growth (5.7%) but signs of slowing in the second quarter.
Paraguay Economy Watch: Paraguay ended the first half of 2026 with South America’s fastest growth, as GDP rose 5.7% year-on-year, led by agriculture (up 12.3%), though momentum cooled in the second quarter (4.0%). Humanitarian & Civic Life: Banco de Alimentos Paraguay kicks off its 2026 National Food Drive on Oct. 3, aiming to collect 40 tonnes of non-perishables with 1,000+ volunteers across Asunción and the interior. Sports & International Events: World Skate Games ASU26 runs Oct. 2–18, bringing 8,000+ athletes to Asunción and metro venues, with an Oct. 2 opening ceremony at the Comité Olímpico Paraguayo. Regional Politics & Security: The “Shield of the Americas” coalition backs Bolivia’s anti-drug and anti-corruption push, while the U.S. and allies keep pressing countries on ICC-related positions. Trade & Diplomacy: India and MERCOSUR are set to expand their preferential trade talks, likely adding services and a critical minerals framework. Visa Policy: Japan published an ePassport entry list that includes Paraguay (since June 1, 2025).
China-U.S. Shift in Latin America: A Latinobarómetro survey for The Economist says favorability toward China rose in 15 of 17 Latin American countries, including Paraguay and Brazil, while views of the U.S. fell in 15—fueling debate over Washington’s approach under Trump. Regional Security Push: The “Shield of the Americas” coalition backed Bolivia’s crackdown on drug trafficking and corruption, praising operations tied to high-ranking officials and urging investigations to continue. Paraguay Municipal Elections: Paraguay’s 2026 municipal vote is set for Sunday, Oct. 4, with campaign and alcohol-sale restrictions in place ahead of polling day. Air Force Capability Upgrade: Paraguay’s Air Force acquired a multi-purpose Cessna 408 SkyCourier for emergency response, medical evacuations, and humanitarian logistics. Sustainable Procurement Progress: Paraguay’s DNCP improved tracking of sustainable public procurement through structured e-GP data and a dashboard, identifying 10,000+ sustainability clauses over two years. UN Careers for Paraguayans: Paraguay’s foreign ministry announced a UN Young Professionals Programme virtual workshop for eligible candidates, including Paraguay.
Municipal Elections 2026: Paraguay heads to municipal polls on Sunday, Oct. 4, with more than five million voters choosing mayors and council members for 2026–2031; the campaign ends at 23:59 on Oct. 1 and alcohol sales are banned nationwide from 19:00 Saturday until voting ends. Air Force Upgrade: The Paraguayan Air Force received a new Cessna 408 SkyCourier, financed by Itaipú Binacional, to boost emergency response, medical evacuation, and logistics, with delivery set for Oct. 5. El Niño Risk Watch: UNICEF says 25.8 million children across Latin America and the Caribbean live in municipalities facing very high El Niño-related rainfall risks, threatening water, food, health, and schooling. Storm Damage in Paraguay: A powerful storm with winds up to 90 km/h affected at least 4,000 families in central and northern/eastern departments, damaging homes, power infrastructure, and crops. Asunción Culture: Swiss violinist Rachel Kolly returns after 12 years for a free Oct. 1 concert at Teatro Municipal de Asunción with OSCA. Trade & Politics in the Region: India and Mercosur (including Paraguay) are finalizing talks to expand their preferential trade deal, aiming long-term at a broader free trade agreement.
China Views Shift: A new Latinobarómetro survey cited by The Economist says favorability toward China rose in 15 of 17 Latin American countries, while views of the U.S. fell in 15—marking a rare moment where China is seen more positively than the U.S. Regional Security: The OAS urged the UN Security Council to fully deploy Haiti’s Gang Repression Force, calling for sustained funding, equipment, and logistics while stressing Haitian-led solutions. Paraguay & Trade: The EU–Mercosur deal remains in legal limbo after the EU’s top court rejected Poland’s bid to suspend provisional implementation, keeping agricultural and environmental concerns at the center. Paraguay in the Spotlight: Paraguay is named among countries in the “Shield of the Americas” visa-restrictions push against alleged transnational crime facilitators, alongside a broader U.S.-led security cooperation drive. Local Culture: Words & Sound returns to Asunción’s Port on Oct. 3 with free entry, bringing international writers and musicians, plus a book fair and workshops. Environment & Paraguay: A Paraguayan Atlantic Forest initiative highlights San Rafael’s biodiversity value and the enforcement gaps facing protected lands.
EU–Mercosur Trade Fight: The EU’s top court rejected Poland’s bid to suspend the EU–Mercosur deal, keeping provisional implementation on track despite protests over farm competition and standards—an issue that directly touches Paraguay, Brazil, Argentina and Uruguay. Regional Security Diplomacy: Brazil is weighing joining Chile’s Santiago Regional Commitment against transnational organized crime, a bloc that overlaps with the U.S.-backed “Shield of the Americas,” while Washington expands visa restrictions tied to alleged criminal facilitation. Paraguay in the Spotlight: Paraguay is named among countries in the Shield declaration and in regional cooperation efforts, as well as in reports on U.S. pressure to boost beef sales amid rising domestic prices. Asunción Culture & Arts: Words & Sound 2026 returns to Asunción’s Port with free literature and music events, while LOEWE’s Craft Prize 2027 opens applications for Paraguayan artisans aiming for an international stage. Business & Investment: J.P. Morgan and Paraguay’s presidency announced a $200M sustainable forestry investment, signaling continued push for long-term development finance.
Shield of the Americas: Paraguay’s role in the U.S.-led Shield is back in focus as the alliance’s “economic, security and multilateral coordination” pillars raise questions about who signed and who stayed out, with Chile’s debate spotlighting the political stakes. Civic Space Watch: In Geneva, Paraguay’s civic-society rules came under fire at the UN Human Rights Council, with critics pointing to restrictive non-profit legislation and risks to freedom of association and protest. Trade & Law: The EU Court of Justice rejected Poland’s bid to pause the EU–Mercosur interim trade deal, keeping pressure on agricultural trade flows that include Paraguay. Beef Diplomacy: President Santiago Peña says the U.S. wants more Paraguayan beef exports, but Paraguay lacks a dedicated import quota—shipments fall under a broader “other countries” allowance. Culture & Memory: Paraguay marks Battle of Boquerón Day, revisiting the 1932 siege that shaped national identity. Film Spotlight: Paraguay selected “Narciso” for the Oscars’ International Feature Film race and the Goya Awards.
OAS Diplomacy: The Organization of American States will convene a foreign ministers consultation in Washington on Oct. 2 to assess Nicaragua’s political crisis, triggered by Ortega-Murillo constitutional changes that tighten opposition access and push elections to 2028. EU Trade Ruling: The EU Court of Justice rejected Poland’s bid to halt the EU–Mercosur interim trade agreement, saying Poland failed to show serious, irreparable harm to farmers, consumers, or the environment. Paraguay Civic Space: At the UN Human Rights Council, Paraguay’s civic-space record drew criticism over restrictive non-profit rules, including Law 7363/2024, with concerns about privacy, funding access, and harassment of civil society. Paraguay Environment & Culture: Paraguay’s Tost, Toson Bumba Nature Reserve received UNESCO Biosphere status, formalizing its place in the World Network of Biosphere Reserves. Paraguay International Spotlight: The film “Narciso” was selected to represent Paraguay at the Oscars and the Goya Awards, based on a real broadcaster case under Stroessner’s dictatorship. US–Paraguay Beef: President Santiago Peña said the US is seeking more Paraguayan beef exports to ease local prices, but Paraguay lacks a dedicated US import quota. US Visa Crackdown: The US announced visa restrictions on Latin American officials and former officials tied to corruption or drug trafficking, including cases involving Bolivia, Colombia, Ecuador, and Peru.
Paraguay–Bolivia Friendly: Miguel Almirón scored twice as Paraguay beat Bolivia 2-0 in an international friendly, with Gaston Olveira making key late saves including a penalty stop. Defense Cooperation: Sixty Paraguayan Armed Forces NCOs took part in a professional development event in Asunción with the Massachusetts National Guard, focused on leadership, stress management, and building trust. Asunción Culture & Youth: Palma Joven 2026 drew an estimated 70,000 people to Calle Palma, featuring a large drumming performance and major local acts as the city center’s youth tradition returned. Country Brand Abroad: President Santiago Peña presented Paraguay’s Marca País license to the New York restaurant “I Love Paraguay,” making it the first overseas venue to receive the distinction. Public Administration & Security: OAS member states called for renewing and fully deploying Haiti’s Gang Suppression Force mandate, urging UN Security Council action and partner funding. Regional Health Policy: Costa Rica will require a yellow fever vaccination certificate for travelers to eight new destinations starting Oct. 1, including Paraguay. Digital Rights/Trade: EU suspended Brazilian meat imports over antibiotic and antimicrobial compliance gaps, with potential knock-on effects for regional suppliers.
Paraguay–U.S. Military Cooperation: Sixty Paraguayan Armed Forces NCOs joined a professional development exchange with the Massachusetts National Guard in Asunción, focusing on leadership, stress and change management, with “trust” highlighted as a key takeaway. Asunción Clean-Up Drive: The city launched a new phase of “Vertedero Clandestino Cero,” targeting more than 100 identified illegal dumping sites, starting with waste removal near Laguna Las Garzas and plans to turn the area into a community football pitch. Youth & Social Policy: Fundación Naho, based in Asunción’s Bañado Sur, supports adolescent mothers with education, training, mental health support and entrepreneurship; since 2017 it has backed over 1,100 women. National Identity Abroad: President Santiago Peña presented Paraguay’s I Love Paraguay restaurant in New York with an official Marca País license, the first such recognition for a Paraguayan business outside the country. Sports & International Events: Paraguay’s national team beat Bolivia 2-0 in a friendly with Miguel Almirón scoring twice; meanwhile, World Skate Games 2026 are set for Asunción, with international skaters selected to compete. Culture: The horror film “La Sombra” released its trailer ahead of a 1 October 2026 cinema premiere.
Paraguay Football: Miguel Almirón scored twice as Paraguay beat Bolivia 2-0 in an international friendly, with Gastón Olveira making key saves including a late penalty stop; Paraguay next faces Colombia in New Jersey. National Team Leadership: Coach Gustavo Alfaro renewed his contract through 2030 and said it will be his final job, citing Paraguay’s “sentiment” and the “ceiling” still ahead after World Cup success. Asunción Local Governance: The Asunción Municipality launched a new phase of its Vertedero Clandestino Cero drive, targeting more than 100 illegal dumping sites, starting near Laguna Las Garzas, with plans to turn cleared areas into community space. Social Policy: Fundación Naho in Asunción backs adolescent mothers—education, training, and support—aiming to break cycles tied to poverty and school dropout. Regional Security Diplomacy: OAS member states, including Paraguay, urged the UN Security Council to renew Haiti’s Gang Suppression Force mandate and fully fund its deployment. Sports in Paraguay: World Skate Games 2026 are set for Asunción (Oct 2–18), with international skaters selected to compete.
Alfaro’s Paraguay exit plan: Gustavo Alfaro confirmed his contract renewal through 2030 will be his last coaching job, saying Paraguay still has “many things to do” and that the country’s sentiment has deeply affected him. Asunción clean-up push: The capital launched a new phase of “Vertedero Clandestino Cero,” targeting 100+ illegal dumping sites, starting near Laguna Las Garzas, with plans to turn recovered land into a community football pitch inside a protected ecological reserve. Teen motherhood support: Fundación Naho, based in Bañado Sur, backs adolescent mothers with education, training, mental health support and entrepreneurship; since 2017 it has supported 1,100+ women, with 64 completing the full program and 24 securing formal jobs. Paraguay football in the spotlight: Alfaro named a 28-man squad for friendlies vs Bolivia and Colombia in the US, marking a new cycle after the World Cup. Energy industry forum: Paraguay will host Energías Paraguay 2026 in Asunción on Oct. 1, bringing authorities and companies to discuss fuels, renewables, electric mobility and service-station transformation. UNGA security debate: OAS member states, including Paraguay, urged the UN Security Council to renew Haiti’s Gang Suppression Force mandate and fund its full deployment.
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