When you look at the political map of South America right now, it’s hard to miss the guy sitting in the Palacio de los López. Honestly, if you're asking who is Paraguay's president, the answer is Santiago Peña. He isn’t just some career politician who climbed a greasy pole. He’s a 47-year-old economist, a former IMF official, and a man who has managed to keep the Colorado Party—a juggernaut that has ruled Paraguay for most of the last 70 years—firmly in the driver's seat.
Peña took the oath of office on August 15, 2023. Since then, he's been trying to pivot the country from a landlocked agricultural hub into a modern, tech-friendly "investment star." But as any local in Asunción will tell you over a cold glass of tereré, it hasn't all been smooth sailing.
The Economist in the Presidential Palace
Santiago Peña is kinda different from the old-school "caudillos" you might expect. He’s polished. He speaks fluent English, thanks to his time at Columbia University in New York. You’ve probably seen him on international news recently, especially after the massive EU-Mercosur trade deal was signed right there in Asunción on January 17, 2026. That was a huge moment for him. He stood next to Ursula von der Leyen and basically told the world that Paraguay is open for business.
Before he was the big boss, he served as the Minister of Finance. That's where he cut his teeth. He’s obsessed with numbers, credit ratings, and macro stability. He’s the youngest president Paraguay has had in the democratic era, and he’s using that "young, modern leader" energy to try and rebrand the country.
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But there’s a shadow.
Critics often point out his close relationship with former President Horacio Cartes. Cartes is a wealthy businessman and the current head of the Colorado Party, but he’s also been labeled "significantly corrupt" by the U.S. State Department. This creates a weird dynamic. Is Peña his own man? Or is he just the "technical" face of a much older, deeper political machine? It's the question that follows him everywhere, from the halls of the UN to the local markets.
Why Paraguay's President Santiago Peña Matters Right Now
You might think a country of 7 million people in the middle of South America doesn't affect your life, but Peña’s foreign policy is actually pretty gutsy. While almost everyone else has moved on, Paraguay's president remains the last major leader in South America to maintain full diplomatic ties with Taiwan.
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He hasn't budged on this. Not for China’s billions. Not for easier trade. He’s doubled down, arguing that values matter more than "deceptive economic models."
A Bold Stance on Global Issues
He’s also made waves by:
- Moving the Embassy: He moved Paraguay’s embassy in Israel to Jerusalem, a move that only a handful of countries have made.
- Venezuelan Crisis: Just weeks ago, in early January 2026, his government was one of the first to call for an "orderly democratic transition" in Venezuela following the fall of the Maduro regime.
- The EU Deal: He played a pivot role in finally closing the 25-year-long negotiation between Mercosur and the European Union.
The Reality on the Ground: Protests and "Hambre Cero"
It’s not all handshakes and summits, though. Inside Paraguay, things are tense. In late 2025, a wave of "Gen Z" protests hit the streets. Young people are frustrated. They look at the "Hambre Cero" (Zero Hunger) program and see inefficiency. They look at the stalling infrastructure projects and wonder where the money went.
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Peña promised 500,000 jobs during his campaign. We’re deep into 2026 now, and while the economy is technically growing, the "man on the street" isn't always feeling it. Poverty remains a stubborn ghost in the machine. Corruption—the "C-word" that has haunted the Colorado Party for decades—is still the number one complaint of the opposition led by figures like Efraín Alegre.
What to Watch Next
If you’re following Paraguayan politics, keep your eyes on the Itaipú Treaty renegotiation with Brazil. This is about the massive hydroelectric dam they share. It's basically Paraguay's biggest chip at the poker table. How Peña handles President Lula of Brazil in these talks will define his legacy more than any speech at the UN.
Also, watch the implementation of the EU trade deal. If it brings the "jobs and prosperity" Peña promised, he might just sail through the rest of his term. If the benefits get stuck in the pockets of the elite, those protests from 2025 might look like a warm-up act.
Actionable Insights for Following Paraguay:
Keep an eye on the official "Presidencia de la República" social media feeds for real-time updates, but balance it by reading independent outlets like ABC Color or Ultima Hora. If you're an investor, watch the Moody’s and S&P ratings for Paraguay; Peña is desperate to hit "investment grade" status before he leaves office.
To understand who is Paraguay's president, you have to see him as a man caught between two worlds: the high-flying world of global finance and the gritty, often messy world of Paraguayan party politics. He’s trying to bridge that gap with a calculator in one hand and a party badge in the other. Whether that bridge holds up is the story of 2026.