Paraguay’s Steady Economic Rise in 2023

As of September 2023, Paraguay’s Gross Domestic Product (GDP) showed a significant increase of 4.7%.

This growth highlights a robust economic performance in the third quarter, with an annual growth rate reaching 3.6%.

The Central Bank of Paraguay (BCP) reported these findings, shedding light on the country’s economic trajectory.

The key drivers of this growth were the services, energy generation, manufacturing, and agriculture sectors.

Despite these gains, the construction and livestock sectors experienced downturns, slightly offsetting the overall economic progress.

From an expenditure viewpoint, the economy benefited from positive influences such as increased net exports, private consumption, and government spending.

However, gross capital formation posed a negative impact, underscoring the complexities of economic development.

The BCP’s detailed analysis attributes the annual growth mainly to the vibrant soy production.

This was complemented by higher yields in rice, sugar cane, cassava, sesame, yerba mate, and canola, diversifying agricultural outputs.

In contrast, certain crops like corn, wheat, sunflower, and tobacco saw declining production, indicating challenges in some agricultural areas.

Substantial Growth of Agriculture

The Ministry of Agriculture and Livestock (MAG) confirmed that agriculture expanded by 3.7% year-on-year, culminating in a substantial 35.9% growth by the end of the third quarter.

This showcases the sector’s resilience and significant contribution to the national economy.

The electricity and water sector, inclusive of the Itaipú and Yacyretá entities, marked a 15.4% growth year-on-year for the third quarter.

Their cumulative growth stood at an impressive 19.3%, reflecting the sector’s robust performance.

The services sector also saw expansion, with a 3.8% increase year-on-year, accumulating a 3.0% rise by the third quarter’s end.

This demonstrates the sector’s steady contribution to Paraguay’s economic landscape.

Finally, the manufacturing sector observed a modest yet positive growth trajectory.

It registered a 1.7% increase compared to the same period in 2022 and achieved a 0.8% cumulative growth by the third quarter, indicating steady industrial progress.