Paraguay’s Central Bank announced that the country achieved the highest economic growth in the region for 2023, registering a 4.9% expansion in the last quarter and an accumulated growth of 4.7% for the year. This performance surpasses neighboring countries like Brazil (2.9%), Colombia (0.6%), Uruguay (0.4%), and Chile (0.2%), while Peru and Argentina faced negative growth rates of -0.5% and -1.6%, respectively.

Key contributors to Paraguay’s growth include positive performances in manufacturing sectors such as soybean oil, meat, milling and bakery products, beverages and tobacco, dairy, and textiles. The livestock, forestry, fishing, and mining sectors also grew by 13.8%, boosted by increased slaughtering and production of raw milk and eggs. The services sector expanded by 5.2%, driven by household and business services, financial intermediation, hospitality, transport, and real estate.

However, the construction sector experienced its seventh consecutive quarter of decline, and agriculture was impacted by lower production levels of corn, sunflower, and tobacco. Additionally, the rise of the U.S. dollar against the Paraguayan guaraní has raised inflationary concerns. The Association of Importers and Traders of Paraguay (Asimcopar) warned that the currency’s devaluation could increase the cost of imports like fuel and other basic goods, urging the Central Bank to take action to mitigate potential inflation.

Source: MercoPress