Paraguay Economic Outlook
July 9, 2019Recently released GDP data revealed that output fell at the sharpest pace in over six years in the first quarter (Q1 2019: -2.0% year-on-year; Q4 2018: +1.0 yoy). Although public expenditure picked up, household consumption dipped for the first time in nearly a decade while capital spending contracted sharply, mainly due to lower investment in machinery and equipment. Exports also fell notably as adverse weather conditions battered soy and beef production, while imports stagnated amid the downturn in domestic demand. Going forward, available metrics suggest that weakness persisted in the second quarter. Economic activity declined for the fifth month running in April, largely reflecting depressed soy production which in turn has severely impacted the external sector as highlighted by plunging merchandise exports in both April and May.
Paraguay Economic GrowthThe economy is seen losing pace this year, primarily due to a more challenging external backdrop. In particular, the U.S.-China trade conflict and the ongoing crisis in Argentina and disappointing activity in Brazil—Paraguay’s main trading partners—are set to weigh on key export industries. FocusEconomics panelists expect growth of 2.8% in 2019, which is down 0.5 percentage points from last month’s estimate, and 3.8% in 2020.
Paraguay Economy Data
5 years of Paraguay economic forecasts for more than 30 economic indicators.
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|Exchange Rate||6,040||0.18 %||Jul 11|
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