Paraguay Economic Outlook
February 18, 2020The economy bounced back in the third quarter of 2019, after contracting in the first half of the year. Quickening private consumption and a rebound in exports spearheaded the recovery. Turning to the fourth quarter of last year, growth seemingly sustained its momentum. Economic activity accelerated in October–November from Q3; private consumption likely benefited from low inflation, as hinted by upbeat retail sales in the quarter. That said, the external sector appeared to weigh on overall growth in Q4 given the plunge in merchandise exports amid declining sales of electricity and soybeans. In other news, the country signed a trade agreement with Brazil on 11 February. The deal removes excises for textiles and goods linked to the car industry and is seen boosting trade ahead.
Paraguay Economic GrowthEconomic growth is expected to gather momentum this year on broad-based improvements. Private consumption should pick up and fixed investment is seen recovering as supply shocks in the agriculture and utilities sectors subside. In addition, exports are seen rebounding as soy production recovers. Regional volatility and weather-related shocks cloud the outlook. FocusEconomics panelists estimate growth of 3.4% in 2020, which is unchanged from last month’s estimate, and 3.8% in 2021.
Paraguay Economy Data
5 years of Paraguay economic forecasts for more than 30 economic indicators.
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|Exchange Rate||6,453||0.18 %||Jan 01|
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