Paraguay has surprised me. To a traveller carrying foreign currency, it can feel inexpensive — but for Paraguayans earning local wages, the picture is rather different.
The minimum wage is around ₲3.04 million a month, roughly ₲702,000 a week (US$116) or ₲36.5 million a year (about US$6,050). An average salary in Asunción is estimated at around ₲4 million a month (US$660).
So where does it go?
A modest one-bedroom apartment can cost around ₲2–3.4 million a month, while basic groceries for one person might be around ₲275,000 a week. Petrol is approximately ₲7,200–₲7,900 a litre, and buying a new car can easily cost ₲100–200 million.
Food, however, can be affordable. Eggs, vegetables, chicken and local meals are inexpensive compared with Australia — and I’ve certainly been enjoying that part!
But here is the statistic that really tells the story: around 60% of Paraguay’s workers are in informal employment. They may be working hard, but without the security of formal employment, pensions or other benefits. So the relatively low unemployment figure doesn’t necessarily mean everyone has a secure job.
Public healthcare is free through the state system, and government assistance is available for vulnerable families and older people. Paraguay also has a universal elderly pension, subject to eligibility.
Indigenous communities face considerably greater economic challenges, particularly in rural areas, where livelihoods often depend on small-scale farming, crafts, fishing, gathering and informal work.
Yet what strikes me most is the resourcefulness of the Paraguayan people. Street sellers, tiny businesses, market traders, motorcycle riders, food stalls and family enterprises are everywhere. People seem remarkably good at making a living from whatever opportunities are available.
So perhaps Paraguay isn’t simply a story about being “cheap.”
For a traveller, ₲40,000 can buy a decent lunch. For someone earning ₲3 million a month, every ₲40,000 matters.
Behind the smiles, colourful streets and delicious empanadas is a country making economic progress — but where millions of people are still relying on ingenuity, family and informal work to make ends meet.