Episode 2: Turning Challenges Into Opportunities | Paraguay: The Hidden Gem of Latin America. While Episode 1 looked at Paraguay’s economic foundations, Episode 2 explores what lies ahead. What makes this country’s future so promising, and why should the world take notice?

Navigating Change: Regional Opportunities in an Uncertain World. After years of turbulence, Latin America entered 2025 with a rare macroeconomic opportunity: growth has stabilized, inflation is down, and public debt is leveling off. But with global risks rising and productivity still weak, the question is whether this calm can be turned into something more lasting.

Latin America and the Caribbean entered 2025 with an unusual advantage: macroeconomic fundamentals are broadly under control. Inflation has eased, interest rates are stabilizing, and unemployment is at its lowest point in over a decade. Yet behind this façade of calm lies a deeper problem, low productivity, high labor informality, and underwhelming

The Role of Sovereign Wealth Funds in Latin America. Despite having some of the world’s most valuable natural resources, Latin America has lagged in using sovereign wealth funds as a tool for long-term development and stability. Unlike Africa and Southeast Asia, where sovereign vehicles are being used to catalyze growth and attract FDI.

Governments across Latin America and the Caribbean have made major investments in digital public infrastructure. Virtually all countries in the region now operate public financial management systems (PFMIS) and tax management systems (TaxMIS), covering an average of 79% of government revenues. But the potential of these systems remains largely untapped: while descriptive analytics are common, the use of more sophisticated tools, such as diagnostic and predictive analytics, lags far behind. The result? Billions in potential savings are being left on the table.

Governments in Latin America Are Missing Billions by Underutilizing Data. Governments across Latin America have built extensive digital infrastructure but are failing to fully leverage their data for decision-making. While 100% of surveyed countries have public financial management (PFMIS) and tax systems (TaxMIS), their use of advanced analytics remains limited.

The Latin American venture capital (VC) ecosystem has undergone significant transformations in the past five years. After a period of hypergrowth fueled by record-breaking liquidity in 2021, the market has recalibrated. The 2024 funding landscape reveals a more selective, efficiency-driven approach, where investors prioritize financial sustainability over rapid expansion.

VC Funding in Latin America. Venture capital in Latin America continues to adjust after the 2021 funding peak, with investors prioritizing sustainability over rapid growth. While total investment remains well below its highs, 2024 shows early signs of stabilization—but only for startups meeting stricter financial expectations.

Latin America’s structured finance market is expected to grow moderately in 2025, driven by corporate funding needs, infrastructure financing, and a stable investment environment. Despite economic uncertainties, S&P Global Ratings forecasts $35 billion in structured finance issuance, marking a 5% increase from 2024. While Brazil