National Debt (% of GDP): Paraguay

Analysis# Paraguay National Debt (% of GDP) Paraguay's national debt stands at 40.6% of GDP in 2026, representing a dramatic recovery from its 1990 peak of 67%. The country achieved its lowest debt-to-GDP ratio of 11.1% in 2011, demonstrating substantial fiscal improvement over three decades. Since 1990, Paraguay has reduced its debt burden by 39.4 percentage points, reflecting long-term economic stabilization and debt management efforts. The period from 2017 to 2024 reveals a sharp reversal, with debt rising from 19.8% to 44.8%—a concerning nine-year spike driven largely by pandemic-related spending in 2020. Recent projections suggest stabilization, with debt declining modestly to 40.6% by 2026. While Paraguay remains well below its historical peak, the upward pressure since 2017 warrants monitoring as the country balances fiscal sustainability with economic recovery.