OP, one point I thought I would clarify.
I5- 4 cores 4 threads
i7- 4 cores 8 threads with hyper threading
Ryzen 1600- 6 cores 12 threads
The hyper threading of the i7 helps make the 4 cores more efficient but is still only 4 cores and will slow down once they are all being used. This site explains it well
https://www.digitaltrends.com/computing/intel-core-i5-vs-i7/
Games like the Witcher 3 do show a decent difference between the i5 and i7, but like more physical cores even more.
The 6 physical cores of the 1600 will be better in scenarios where 6 cores are under sustained load. The general concensus on the forums is that this is not currently the case for Paradox games. They do, however use a bunch of threads (and thus cores) and are improving over time. If you are planning on keeping the pc for several years this is something to consider.
Clock for clock the Ryzen is almost as good as the i7, but will stop at around 4 ghz. Your i5, with a decent cooler, might hit 4.8 or so.
Short version is for Paradox games i5 fast now, i7 fastest now, Ryzen a little slower than i5 at the moment, with the potential to be much faster and last longer till an upgrade.
For Victoria 2, any modern CPU will be fine. the I5 is probably the best bet.
Also, remember the i5/i7 does not come with a fan, so you have to factor that cost in!
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Now that I have typed all this I looked at your current specs... and my suggestion has changed. Your current CPU is fine and if overclocked might only be 10-20 percent behind a Kaby i7 and may be FASTER than the i5 in many games. Overclock that bad boy you already have, whack in an SSD for your games install/operating system and away you go. I would not suggest you upgrade the video card at the moment either, Etherum miners are literally buying all the video cards available in stores and pushing the prices to double of triple what they were.