The National Institute of Statistics of Paraguay estimates the countryβs total fertility rate (TFR) at 1.95, already below replacement:
ine.gov.py/Publicaciones/Bibβ¦
Now, you may be asking: Why should I care about Paraguay (unless, of course, youβre from Paraguay)?
Paraguayβs income per capita, around $6,500, is roughly one-fifth that of the U.S. in PPP terms. It ranks in the bottom quartile of Latin America, poor by most standards (although not as poor as Haiti).
Yet despite being a poor country, Paraguayβs TFR has already fallen below replacement and is declining fast. The official projection for 2050 is 1.72.
That seems overly optimistic. Based on regional trends, Iβd expect something closer to 1.3 or lower. I could be wrong, of course, but itβs difficult to justify a rosier forecast given current data.
On top of that, Paraguay suffers from net emigration: many Paraguayans leave for Argentina, Brazil, or Spain in search of better opportunities. Itβs not a country likely to attract large-scale immigration to offset fertility decline.
So hereβs the real question: Have economists seriously started thinking about the long-run consequences of a sustained TFR well below replacement in a country with $6,500 per capita income, net outmigration, and limited state capacity?
Because this is no longer a hypothetical. Itβs Paraguay in 2025.