Paraguay’s Economy Expands by 5.9% as Non-Farm Sectors Drive 2025 Growth

Paraguay’s economy grew by 5.9% in the first three months of 2025 compared to the same period last year, according to the Central Bank of Paraguay. This is one of the fastest growth rates the country has seen in recent years.

The biggest reason for this growth comes from sectors outside of farming, which used to be Paraguay’s main economic driver.

Services like hotels, restaurants, and transport grew by 6%. Construction grew even more, rising by 12.9% as both government and private companies invested in new projects.

Manufacturing also did well, with a 6.6% increase, especially in food, drinks, and machinery. The country’s important electricity sector, powered by the Itaipú and Yacyretá dams, grew by 8.3%.

However, agriculture shrank by 3.4% because of bad weather that hurt soybean harvests. This is important because soybeans are usually one of Paraguay’s top exports.

On the other hand, livestock, forestry, fishing, and mining grew by 10.8%, which helped balance out the problems in farming.

People in Paraguay spent more, and the government also increased its spending.

Companies invested more in equipment and technology, which shows that businesses expect the economy to keep growing.

Imports went up by 4.5%, mainly because companies bought more machines and technology. This points to a shift towards more modern industries.

The Central Bank expects the economy to keep growing and has raised its forecast for the year to 4%.

Paraguay’s Economy Expands by 5.9% as Non-Farm Sectors Drive 2025 Growth

Still, there are risks from global trade problems and changing prices for exports. Inflation is expected to be just above the 3.5% target, which means prices will rise but not too quickly.

Paraguay’s leaders say this growth comes from careful economic management and efforts to develop more than just farming.

The government has kept its budget deficit low and has not changed interest rates much. This has helped keep the economy stable.

The real story is that Paraguay is starting to rely less on farming and more on other sectors like construction, services, and manufacturing.

This makes the economy stronger and creates new opportunities for businesses and workers. All data in this article comes from official Central Bank of Paraguay reports.