Current Account Balance: Paraguay

Analysis# Paraguay Current Account Balance Paraguay's current account balance stands at -3.7% of GDP in 2026, reflecting a structural deficit in its external finances. This represents a substantial decline from the all-time peak of 8.6% in 2002, when the country enjoyed a significant surplus. The -3.7% figure remains well above the historical low of -11.6% recorded in 1987, positioning Paraguay in the moderate deficit range. Over the past 46 years, the country has experienced a 45.6 percentage point shift toward deficits, indicating a fundamental rebalancing of its external position. Recent volatility dominates Paraguay's trajectory. The metric swung dramatically from a 1.9% surplus in 2020 to a severe -7% deficit in 2022, the worst performance in the current data cycle. Since then, the deficit has moderated to -3.7%, stabilizing around the -3.5% to -3.9% range through 2025-2026. This stabilization suggests Paraguay may be finding equilibrium in its external accounts, though persistent deficits indicate ongoing reliance on external financing or capital inflows.