Paraguay Economic Outlook
September 10, 2019The economy seems to have contracted more rapidly in the second quarter after shrinking for the first time in over six years in the first quarter. The economic activity indicator fell at a sharper pace, on average, in Q2. This was largely due to falling soybean production amid adverse weather conditions. Consequently, merchandise exports contracted more markedly in the quarter against a challenging trade backdrop. That said, the rate of decline in overall activity eased throughout Q2, thanks to a buoyant services sector and reduced drag by the manufacturing sector. Moreover, a notably softer drop in average remittances and strong credit growth in the quarter hint at a rebound in household consumption. Turning to the third quarter, exports fell less sharply in July, while credit availability remained robust in the month despite moderating somewhat.
Paraguay Economic GrowthThe economy is seen losing further traction this year amid downbeat external conditions. Argentina’s economic crisis and Brazil’s lackluster outturn—both key trading partners of Paraguay—are expected to weigh on exports. A notable weakening in domestic demand is also set to restrain the expansion. FocusEconomics panelists expect growth of 2.3% in 2019, which is down 0.2 percentage points from last month’s estimate, and 3.6% in 2020.
Paraguay Economy Data
5 years of Paraguay economic forecasts for more than 30 economic indicators.
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|Exchange Rate||6,248||0.18 %||Sep 04|
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