Paraguay Economy

Is Paraguay a rich country?

Landlocked Paraguay has a market economy distinguished by a large informal sector, featuring re-export of imported consumer goods to neighboring countries, as well as the activities of thousands of microenterprises and urban street vendors. A large percentage of the population, especially in rural areas, derives its living from agricultural activity, often on a subsistence basis. Because of the importance of the informal sector, accurate economic measures are difficult to obtain.

On a per capita basis, real income has grown steadily over the past five years as strong world demand for commodities, combined with high prices and favorable weather, supported Paraguay's commodity-based export expansion. Paraguay is the fifth largest soy producer in the world. Drought hit in 2008, reducing agricultural exports and slowing the economy even before the onset of the global recession. The economy fell 3.8% in 2009, as lower world demand and commodity prices caused exports to contract. Severe drought and outbreaks of hoof-and-mouth disease in 2012 led to a brief drop in beef and other agricultural exports. Since 2014, however, Paraguay’s economy has grown at a 4% average annual rate due to strong production and high global prices, at a time when other countries in the region have contracted.

The Paraguayan Government recognizes the need to diversify its economy and has taken steps in recent years to do so. In addition to looking for new commodity markets in the Middle East and Europe, Paraguayan officials have promoted the country’s low labor costs, cheap energy from its massive Itaipu Hydroelectric Dam, and single-digit tax rate on foreign firms. As a result, the number of factories operating in the country – mostly transplants from Brazil - has tripled since 2014.

Corruption, limited progress on structural reform, and deficient infrastructure are the main obstacles to long-term growth. Judicial corruption is endemic and is seen as the greatest barrier to attracting more foreign investment. Paraguay has been adverse to public debt throughout its history, but has recently sought to finance infrastructure improvements to attract foreign investment.

Paraguay Economy Data

What is the GDP of Paraguay?

GDP - Gross Domestic Product (PPP) $58,490,000,000 (USD)
GDP - official exchange rate $29,070,000,000 (USD)
GDP - real growth rate 3%
GDP Per Capita $8,800.00 (USD)
GDP by Sector- agriculture 18.9%
GDP by Sector- Industry 18.5%
GDP by Sector- services 62.6%
GDP - composition, by end use household consumption: 67.4%

government consumption: 12%

investment in fixed capital: 15.9%

investment in inventories: 0.3%

exports of goods and services: 46.8%

imports of goods and services: -42.4%
Population Below Poverty Line 18.8%
Inflation Rate 7.2%
Labor Force 3,038,000
Labor Force By Occupation- agriculture 26.5%
Labor Force By Occupation- industry 18.5%
Labor Force By Occupation- services 55%
Unemployment Rate 5.7%
Fiscal Year calendar year
Annual Budget $3,238,000,000 (USD)
Budget Surplus or Deficit - percent of GDP 1.6%
Public Debt (% of GDP) 36.1%
Taxes and other revenues - percent of GDP 18.9%
Major Industries sugar, cement, textiles, beverages, wood products, steel, metallurgic, electric power
Industrial Growth Rate 6.5%
Agriculture Products cotton, sugarcane, soybeans, corn, wheat, tobacco, cassava (tapioca), fruits, vegetables; beef, pork, eggs, milk; timber
Currency Code guarani (PYG)
Child Labor - % of children ages 5-14 15%
Child Labor - # of children ages 5-14 205,297
Commercial Bank Prime Lending Rate 28.9%

Labor Force by Occupation- As reported by Paraguay

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