Paraguay GDP Annual Growth Accelerates in Q3

Paraguay’s economy expanded 5.8% year-on-year in the first quarter of 2026, easing from a 6.2% increase in the previous quarter. The services sector rose 6.6% on strong performances in transportation, financial intermediation, household and government services, real estate, restaurants and hotels, business services, telecommunications, information services, and valuation services. Manufacturing activity increased 6.0%, supported by higher production of oils, dairy products, sugar, milling and bakery products, beverages and tobacco, chemical and pharmaceutical products, paper, wood, non-metallic minerals, basic metals, machinery and equipment, and other manufactured goods. Agriculture grew 8.2%, driven by stronger soybean, sugarcane, cassava, beans, sunflower, and tobacco output. The construction sector expanded 5.6% on faster private-sector project execution, while utilities rose 4.7%, supported by solid performances in electricity distribution, water supply, and sanitation.

Paraguay's GDP expanded 6.2% year-on-year in Q4 2025, down from 6.7% in the previous quarter. Growth was driven by strong performance in services (5.7% vs 6.6% in Q3) and electricity and water (13.2% vs 8.3%), while agriculture rebounded sharply (20.8% vs 15.7%). On the other hand, expansion accelerated in construction (4.3% vs 3.4%) and in livestock, forestry, fishing and mining (3.9% vs 3.0%), whereas manufacturing eased (3.7% vs 7.3%). From the expenditure side, domestic demand rose 6.7%, slightly above the 6.2% recorded in Q3.

Paraguay's GDP expanded 6.6% year-on-year in Q3 2025, up from 6.5% in the previous quarter. Growth was driven by strong performance in services (6.9% vs 7.1% in Q2) and electricity and water (8.3% vs 14.1%), while agriculture rebounded sharply (9.5% vs 3.5%). On the other hand, expansion eased in construction (3.4% vs 4.5%) and in livestock, forestry, fishing and mining (2.7% vs 5.2%), whereas manufacturing accelerated (7.4% vs 4.5%). From the expenditure side, domestic demand rose 5.9%, well below the 14.1% recorded in Q2.