Country/economic activity expanded by 6.5% during the year

After a period of sustained decline, economic activity has returned to a growth trajectory thanks to the good performance of several economic sectors in the country. The latest data shows that driven by agriculture, services, energy generation and other fields, the cumulative growth this year is 6.5%.

The Paraguayan Central Bank’s (BCP) monthly index of economic activity in Paraguay (Imaep) increased by 6.9% compared with the same month last year. Based on this calculation, the cumulative change in 7 months of the year reaches 6.5%.

They pointed out that the year-on-year growth was mainly affected by the good performance of the agriculture, services, power generation, livestock and construction industries. But negative results in the manufacturing sector dampened the good performance in economic activity.

According to the latest estimates of agricultural activity in 2022/2023 from the Ministry of Agriculture and Livestock, agriculture increased year-on-year, mainly due to increased production of soybeans, rice, cassava and sugarcane. In terms of services, activities such as government services, commercial services, catering and hotels, commerce, household services, financial intermediaries and transportation performed well year-on-year.

Regarding power generation in both countries, they continue to show year-to-year growth as the flow of the Paraná River improves compared to the previous year. The livestock industry performed well year-on-year, with increased slaughter of cattle, pigs and poultry, and increased production of raw milk and eggs.

Fifteen months later, the construction industry again posted modest year-on-year growth as the number of executions of both private and public works increased. In manufacturing, activities with a negative year-on-year impact include sugar production, factories and bakeries, chemicals, wood, paper, textiles and clothing, non-metallic minerals and metal products.