Paraguay - Country Partnership Framework for the Period FY2027-2034 : Supporting Documents

Overview & Synopsis

Paraguay maintains macroeconomic stability and has achieved notable poverty reduction, yet progress has slowed as growth remains volatile due to dependence on natural resource–linked sectors, repeated climate shocks, infrastructure and human capital gaps, institutional weaknesses, high informality, and fiscal constraints, while a young population presents an opportunity to boost productivity and inclusion. In the coming years the World Bank Group will focus on improving resilience, connectivity, and power for growth by rehabilitating key road corridors, strengthening multimodal logistics and waterways, enhancing road safety and asset management, advancing e-mobility, and deepening energy sector reforms to enable renewable energy, regional power trade, storage, and energy efficiency, alongside urban flood resilience through climate‑resilient infrastructure, nature‑based solutions, and strengthened emergency and social systems. Support to a healthier and more skilled workforce will center on raising foundational learning and teacher support, embedding life skills, expanding market‑relevant technical and vocational education co‑designed with employers and linked to internships and apprenticeships, building data systems that connect students to further education and jobs, and strengthening integrated primary health care with reliable access to essential medicines and modern quality systems. To increase private investment and access to financial services for job creation, the program will promote inclusive finance for Micro, Small and Medium Enterprises including women entrepreneurs, bolster competition and insolvency frameworks, enhance transparency and integrity, accelerate digitalization such as e‑invoicing and digital payments, deepen capital markets, and catalyze private capital into agribusiness, forestry, logistics, and light manufacturing, including through climate finance and sustainable agroforestry. The agenda will also advance public private partnerships, strengthen public financial management and procurement, and apply enhanced supervision and readiness measures to improve implementation. Throughout, a One World Bank Group approach will align International Bank for Reconstruction and Development, International Finance Corporation, and Multilateral Investment Guarantee Agency instruments to crowd in private investment and deploy de‑risking solutions, while reinforcing statistical capacity and evidence‑based policymaking to sustain reforms and deliver better jobs and more resilient, inclusive growth.