Paraguay Economy Grows 4% in Second Quarter as Exports Rise and Investment Falls
Paraguay economy grew 4% in Q2 2026 on a year earlier, slowing from 7.3%, as exports rose 11.5% and investment fell. Fitch kept BB+ with a positive outlook. The post Paraguay Economy Grows 4% in Second Quarter as Exports Rise and Investment Falls appeared first on The Rio Times .
Paraguay's economy expanded by 4.0% in the second quarter of 2026, compared to a year earlier, according to the central bank. This is a slowdown from the 7.3% growth recorded in the first quarter. The primary driver of growth was exports, which rose by 11.5% year-on-year, while imports fell by 5.7%. Domestic demand, however, contracted by 2.6%.
Investment fell sharply by 11.8%, following a decline in purchases of crypto-mining machinery. The agriculture sector led the growth, expanding by 11.1% due to larger harvests of soy, rice, beans, sunflowers, and tobacco. The electricity and water output also increased by 13%, fueled by power-intensive industries. Livestock, forestry, and fishing sectors contracted by 4.1% as ranchers slaughtered fewer cattle.
Manufacturing grew by a modest 1.8%, while services growth slowed to 3.4%. The BCP projects 4.5% growth for the entire year of 2026. Fitch Ratings affirmed Paraguay's credit rating at BB+ with a positive outlook, citing strong growth and a manageable debt level. However, the agency noted weaknesses in institutions, low tax collection, and unpaid bills to state suppliers.
The country's international reserves stood at $11.44 billion, up 9.1% year-on-year, and the guaraní traded at around 5,856 per US dollar.
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