Santiago Peña, an economist and former finance minister from Paraguay’s conservative Colorado Party, won a decisive victory in April’s presidential election. In most of the region, incumbent parties have struggled in recent elections. But Peña’s Colorado Party not only retained control of the presidency, it also won majorities in both chambers of Congress, giving him an opportunity to implement an ambitious economic agenda. 

As Paraguay emerges from a long drought, its robust agriculture sector will help drive economic growth. Still, Paraguay’s new leader faces challenges as he attempts to create 500,000 jobs, reduce poverty, and fight crime and corruption. Foreign policy will also be complex, as the president deepens Paraguay’s relationship with Taiwan amid pressure from Beijing and objections from local farmers eager for a new export market. Closer to home, Paraguay and its neighbors are discussing the future of the Mercosur trade bloc, while Paraguay and Brazil are expected to renegotiate the electricity rates of the Itaipú dam.