Paraguay’s economy grew by 4.3% in 2024, according to the Central Bank of Paraguay (BCP), reflecting a mix of strong sectoral performances and notable challenges.
Services, livestock, and construction drove this growth, while manufacturing, agriculture, and energy generation faced setbacks that moderated the overall economic momentum.
The services sector played a pivotal role, with gains in financial services, trade, transportation, real estate, and hospitality. This growth reflects increased consumer activity and rising domestic demand.
Livestock also contributed positively, with higher slaughter rates for cattle, pigs, and poultry, alongside modest increases in milk and egg production. Construction activity surged as both private and public infrastructure projects accelerated during the year.
However, manufacturing saw mixed results. Declines in oil processing, paper products, dairy goods, and baked items offset gains in meat production, beverages, textiles, and machinery.
Agriculture faced challenges earlier in the year but ended on a positive note due to strong harvests of soybeans, wheat, rice, cotton, and yerba mate. Meanwhile, energy generation struggled as hydroelectric output from Itaipú and Yacyretá declined due to low water levels.
Despite these challenges, Paraguay maintained economic stability with inflation at 3.4%, within the central bank’s target range. GDP reached $42.96 billion in 2024, with per capita income rising to $6,415.
Services dominated the economy at 39% of GDP, followed by industry (25%) and agriculture (21%). This growth underscores Paraguay’s resilience but highlights the need for diversification. Reducing reliance on agriculture and energy exports is crucial, while also addressing climate-related risks.
Deep Dive
For the complete picture, read our in-depth guide: Paraguay: Washington's Most Valued Ally in Latin America