Paraguay is a landlocked country in South America bordered by Argentina, Brazil, and Bolivia with a population of 6.7 million and an economy of 26 billion in 2017. The country is home to the Acuífero Guaraní, one of the largest fresh water resources in the region, several rivers, and 4.8 million hectares of arable land.  Approximately 39% of the country is forest area and 55% Is agricultural land. Paraguay, classified as an upper-middle-income economy, has a per-capita GDP of 3,900 in 2017. The country has a predominantly urban population of 4 million, or 60% of the population; 40% of urban population lives two cities, Encarnación and Ciudad del Este, the other 60% live in Asunción. Paraguay has made significant gains in poverty reduction and inequality. The population living below the national poverty line has declined from 37% in 2011, to 29% in 2016. The Paraguayan economy is primarily based on agriculture, animal husbandry, and hydroelectric energy production. Services value added represent 45% of GDP followed by industry, 26%, agriculture 18%, and Manufacturing 11%. Trade represents 84%, a significant portion of GDP, and is characterized by exports of soy, energy, and meat.

Adaptation to climate change is a priority in Paraguay’s 2030 National Development Plan and a focus of Paraguay’s climate policy. Its economy is highly dependent on production and exports of primary goods, particularly agriculture and animal husbandry. Priority adaptation sectors identified by Paraguay’s Nationally Determined Contribution (NDC) include: water resources, forestry, agricultural production and animal husbandry, land management, energy, infrastructure, health and sanitation, and disaster risk management.