Paraguay

The Paraguayan economy grew by 5.8% in 2008, marking six consecutive years of economic expansion. This result was due to the performance of the external sector, which was positive due to the price boom for its principal export products and a favourable harvest. Domestic demand was also significantly buoyant, reflecting an increase in private consumption and in investment. The first two quarters of 2008 were characterized by robust economic activity, while the third quarter showed a deceleration and, in some sectors, even a decline. It was a good year for agriculture and livestock, and industry recovered, owing, in particular, to significant growth in construction and machinery production. The year ended with balanced fiscal accounts, attaining a surplus of 2.6% of GDP and a primary balance of 3.3%. Inflation reached 7.5% in December but is expected to fall in 2009. The current account deficit (2.2% of GDP) was larger than in the previous years and is expected to widen in 2009. Economic growth is projected to decline sharply, continuing the less favourable trend that began during the second half of 2008. This slowdown will be caused by, among other factors, a drop in income from the external sector and a less buoyant agricultural activity on account of the drought. A growth rate of 3% is projected for 2009.

Sustainable Development Goals:

Decent Work and Economic Growth

Industry, Innovation and Infrastructure

Peace, Justice and Strong Institutions