Paraguay’s GDP Soars by 4.7% in the First Three Quarters of 2023

The Central Bank of Paraguay (BCP) released a groundbreaking report revealing that Paraguay’s Gross Domestic Product (GDP) witnessed a significant increase of 4.7% in the third quarter of 2023. This robust growth, outpacing the 3.6% expansion from the previous year, was primarily propelled by the energy and services sectors.

Agriculture emerged as a key driver, with a notable 3.7% growth, contributing to a staggering 35.9% yearly expansion. The sector’s success hinged on the increased production of soy, rice, sugarcane, cassava, sesame, yerba mate, and rapeseed.

The manufacturing sector also showed promising results, growing by 1.7%, with oils, dairy products, sugar, beverages, tobacco, textiles, apparel, leather, footwear, nonmetallic mineral products, and basic metals leading the charge.

The electricity and water sector demonstrated a remarkable rebound, surging by 15.4% in the third quarter and recording a cumulative growth of 19.3% in 2023.

The services sector, too, contributed significantly, marking a 3.8% year-on-year increase and a cumulative growth of 3.0% by the end of the third quarter. This sector encompassed household services, including health, education, leisure, as well as restaurants, hotels, government services, business services, trade, financial intermediation, transportation, and real estate.

Despite these positive developments, certain areas such as construction, livestock, corn, wheat, sunflower, and tobacco faced setbacks in the third quarter, impacting the overall economic growth negatively.

This impressive economic performance of Paraguay highlights its resilience and the potential for continued growth in various sectors. The report underscores the nation’s emerging economic strength in the South American region.