Paraguay Economy
Is Paraguay a wealthy country?
Agriculture: The Backbone of Paraguay's Economy
Agriculture remains the cornerstone of Paraguay's economy, contributing significantly to its GDP and employment. Known as the "Heart of South America," Paraguay boasts fertile lands conducive to cultivating crops such as soybeans, corn, wheat, and sugarcane. The country is a leading global exporter of soybeans, with vast expanses of land dedicated to this lucrative crop.
Furthermore, Paraguay's livestock sector, including cattle and poultry farming, plays a vital role in the economy, catering to both domestic consumption and export markets. Agricultural expansion and modernization efforts have propelled Paraguay into the global spotlight, attracting investment and driving economic growth.
Diversification and Industrialization
In recent years, Paraguay has endeavored to diversify its economy beyond agriculture, embracing industrialization and innovation. Manufacturing has grown significantly, particularly in food processing, textiles, and automotive assembly. Foreign investment has played a pivotal role in driving this expansion, with multinational corporations establishing operations in the country to capitalize on its strategic location and business-friendly environment.
Paraguay's renewable energy sector is also gaining momentum, with investments in hydroelectric power generation harnessing the country's abundant water resources. The Itaipu Dam, one of the world's most extensive hydroelectric facilities, symbolizes Paraguay's commitment to clean energy and sustainability.
Trade and Regional Integration
Paraguay's strategic location at the crossroads of South America has positioned it as a key player in regional trade and integration initiatives. The country is a member of Mercosur, a regional trading bloc comprising Argentina, Brazil, Uruguay, and Paraguay, facilitating the free movement of goods, services, and capital among member states.
Furthermore, Paraguay's export-oriented economy benefits from preferential trade agreements with various countries, enhancing its access to international markets. The country's export portfolio includes agricultural products, textiles, minerals, and manufactured goods, with neighboring countries serving as primary trading partners.
Challenges and Opportunities
While Paraguay's economic growth story is impressive, the country faces challenges that require attention and proactive measures. Inequality, infrastructure deficiencies, and institutional reforms are among the key areas that policymakers are addressing to ensure inclusive and sustainable development.
Moreover, Paraguay must navigate external factors such as global market volatility and climate change, which pose risks to its agricultural-dependent economy. Diversification efforts and investments in human capital and infrastructure are essential to building resilience and fostering long-term prosperity.
Paraguay Economy Data
What is the GDP of Paraguay?
| Currency Name and Code | Paraguayan Guarani (PYG) |
| GDP - Gross Domestic Product (PPP) | $87,980,000,000 (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 |
| Exchange Rate per US Dollar | 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% |