Recent indicators point to slower growth in the third quarter, as the monthly economic activity gauge contracted 0.7% in August. The result contrasted the 0.8% expansion recorded in July and marked the first drop in the indicator since October 2009. Meanwhile, the government lifted a one-month ban on meat exports, which it had imposed in mid-September, following a foot-and-mouth disease outbreak at a ranch in Central Paraguay. Meat represents one of the countries’ main exports and the ban is likely to have dented economic growth in the fourth quarter. Accordingly, the Central Bank cut its growth forecast for this year from 4.5% to 4.0%.
