By Daniela Desantis
ASUNCION, Oct 4 (Reuters) - The candidate for Paraguay's ruling Colorado Party lost the mayor's race in the country's capital on Sunday in municipal elections widely seen as a midterm test for the right-wing government ahead of the 2028 general election.
With 99.92% of votes counted in Asuncion, Soledad Nunez of the opposition coalition Alianza Juntos Por Asunción had 47.78% of the vote while Colorado candidate Camilo Perez won 45.98%.
Colorado had controlled the mayor's seat since
2019.
In the country's second-largest city, Ciudad del Este, opposition candidate Dani Mujica won the mayor's race by a wide margin.
Perez told reporters on Sunday night that he would await an official review of the results on Monday.
Nunez, a 2023 candidate for vice president, inherits a municipality burdened by millions of dollars in debt obligations, missed interest payments, stalled public works projects and infrastructure problems.
In Ciudad del Este, a key commercial hub in the tri-border area with Argentina and Brazil, Mujica of the Yo Creo opposition movement won 72.83% of the vote, well ahead of the Colorado Party candidate on 23.8%, with all votes counted.
A centrist, Miguel Prieto, the head of the Yo Creo movement, is expected to seek the presidency in 2028. Analysts see the 37-year-old lawyer as a rising political force capable of mounting one of the strongest challenges in years to the Colorado Party's long dominance of Paraguayan politics.
(Reporting by Daniela Desantis; writing by Lucinda Elliott and Leila Miller; Editing by Cynthia Osterman)
