The forest and city in Paraguay

Paraguay Economy

Paraguay's economy in numbers:

Nominal GDP of USD 41.8 billion in 2022.

GDP per capita of USD 5,610 compared to the global average of USD 10,589.

Average real GDP growth of 2.8% over the last decade.

Share of the region's population
Share of the region's GDP

Economic structure:

In 2021, services accounted for 55% of overall GDP, manufacturing 20%, other industrial activity 15%, and agriculture 10%. Looking at GDP by expenditure, private consumption accounted for 64% of GDP in 2021, government consumption 13%, fixed investment 22%, and net exports 1%.

GDP by economic sector
GDP by type of expenditure

International trade:

In 2021, manufactured products made up 13% of total merchandise exports, mineral fuels 15%, food 69%, ores and metals 1% and agricultural raw materials 1%, with other categories accounting for 1% of the total. In the same period, manufactured products made up 77% of total merchandise imports, mineral fuels 13%, food 8%, ores and metals 2% and agricultural raw materials 1%, with other goods accounting for -1% of the total. Total exports were worth USD 13 billion in 2022, while total imports were USD 15 billion.

Key exports
Key imports
Key export partners
Key import partners

Economic growth:

The economy recorded average annual growth of 2.8% in the decade to 2022. To read more about GDP growth in Paraguay, go to our dedicated page.

Fiscal policy:

Paraguay's fiscal deficit averaged 2.2% of GDP in the decade to 2022. Find out more on our dedicated page.

Unemployment:

The unemployment rate averaged 6.2% in the decade to 2022. For more information on Paraguay's unemployment click here.

Inflation:

Inflation averaged 4.1% in the decade to 2022. Go to our Paraguay inflation page for extra insight.

Monetary Policy:

Paraguay's monetary policy rate ended 2022 at 8.50%, up from 5.50% a decade earlier. See our Paraguay monetary policy page for additional details.

Exchange Rate:

From end-2012 to end-2022 the guarani weakened by 42.8% vs the U.S. dollar. For more info on the guarani, click here.
The economy lost steam at the outset of 2024, expanding 4.3% year on year in Q1 (Q4 2023: +4.9% yoy), as exports growth dropped more than five-fold in the quarter. That said, public expenditure and fixed investment rebounded, and private spending gained momentum. Shifting to Q2, available data paints a mixed picture. Economic activity rose 7.8% year on year in April on the back of strong output in the agriculture, construction, manufacturing and services sectors. That said, inflation outpaced its Q1 average in Q2, and consumer confidence waned from Q1 in April–May, hinting at softer private spending growth. Moreover, goods exports swung into contraction on average in April–May and likely faced further headwinds in June due to dredging work on the Paraná river—a crucial artery for agricultural exports, particularly soybeans.
Projections out to 2033.

46 indicators covered including both annual and quarterly frequencies.

Consensus Forecasts based on a panel of 14 expert analysts.

Want to get insight on the economic outlook for Paraguay in the coming years? FocusEconomics collects projections out to 2033 on 46 economic indicators for Paraguay from a panel of 14 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Paraguay economy. To download a sample report on the Paraguay's economy, click here . To get in touch with our team for more information, fill in the form at the bottom of this page .

Paraguay Economic Data

2018 2019 2020 2021 2022
Population (million) 7.1 7.2 7.3 7.4 7.5
GDP (USD bn) 40.1 37.9 35.3 39.8 41.8
GDP per capita (USD) 5,690 5,297 4,872 5,414 5,610
GDP (PYG bn) 230,576 236,681 239,915 270,634 292,947
Economic Growth (Nominal GDP, ann. var. %) 5.2 2.6 1.4 12.8 8.2
Economic Growth (GDP, ann. var. %) 3.2 -0.4 -0.8 4.0 0.2
Domestic Demand (ann. var. %) 6.4 0.2 -2.8 10.1 3.7
Private Consumption (ann. var. %) 4.3 1.8 -3.6 6.1 2.3
Government Consumption (ann. var. %) 3.0 4.7 5.1 2.6 -2.2
Fixed Investment (ann. var. %) 6.9 -6.1 5.3 18.2 -1.8
Exports (G&S, ann. var. %) -0.4 -3.4 -9.0 2.1 -1.1
Imports (G&S, ann. var. %) 8.2 -2.0 -15.2 21.8 9.4
Unemployment (% of active population, eop) 5.6 5.7 7.2 6.8 5.8
Fiscal Balance (% of GDP) -1.3 -2.8 -6.1 -3.6 -2.9
Public Debt (% of GDP) 22.3 25.8 36.9 37.5 40.5
Money (ann. var. of M2 %) 6.6 6.4 18.7 8.2 3.2
Inflation (CPI, ann. var. %, eop) 3.2 2.8 2.2 6.8 8.1
Inflation (CPI, ann. var. %, aop) 4.0 2.8 1.8 4.8 9.8
Policy Interest Rate (%, eop) 5.25 4.00 0.75 5.25 8.50
Exchange Rate (PYG per USD, eop) 5,960 6,464 6,897 6,906 7,366
Exchange Rate (PYG per USD, aop) 5,746 6,246 6,789 6,798 7,006
Current Account Balance (USD bn) -0.1 -0.2 0.7 -0.3 -3.0
Current Account Balance (% of GDP) -0.2 -0.6 1.9 -0.9 -7.2
Merchandise Trade Balance (USD bn) 0.6 0.2 1.2 0.6 -1.9
Merchandise Exports (USD bn) 13.2 12.1 11.0 13.2 12.8
Merchandise Imports (USD bn) 12.6 11.9 9.7 12.6 14.7
Merchandise Exports (ann. var. %) 1.5 -8.1 -9.6 20.7 -3.1
Merchandise Imports (ann. var. %) 11.6 -5.5 -18.3 29.4 17.1
Foreign Direct Investment (USD bn) 0.2 0.3 0.1 0.2 0.7
International Reserves (USD bn) 8.0 7.7 9.5 9.9 9.8
International Reserves (months of imports) 7.6 7.7 11.7 9.5 8.0
External Debt (USD bn) 17.2 17.6 20.7 22.2 24.5
External Debt (% of GDP) 42.8 46.6 58.7 55.7 58.6

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