25.09.202618:34:12UTC+00Paraguay GDP Growth Slows in 2Q26

Paraguay’s economy expanded by 4% year-on-year in the second quarter of 2026, slowing from a revised 7.3% increase in the previous quarter. Agricultural output rose 11.1%, driven by higher production of soybeans, rice, beans, sunflower and tobacco, as well as corn, cotton, sesame, and yerba mate.

Net external demand was the main driver of GDP growth: exports increased 11.5% while imports declined 5.7%. Manufacturing output grew 1.8%, supported by rising production of oils, dairy products, sugar, beverages and tobacco, chemical and pharmaceutical products, paper, wood products, non-metallic minerals, base metals, and machinery and equipment.

The construction sector expanded 4.2%, reflecting stronger activity in private projects and increased demand for key construction inputs.

On the expenditure side, domestic demand fell 2.6% year-on-year, largely due to an 11.8% decline in gross fixed capital formation. In contrast, private consumption rose 3.2%, and government consumption increased 6.2%.