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    Paraguay Economy - 1989

      Overview: The economy is predominantly agricultural. Agriculture, including forestry, accounts for 25% of GNP, employs about 50% of the labor force, and provides the bulk of exports. Paraguay has no known significant mineral or petroleum resources, but does have a large hydropower potential. Since 1981 economic performance has declined compared with the boom period of 1976-81, when real GDP grew at an average annual rate of nearly 11%. During 1982-86 real GDP fell three out of five years, inflation jumped to an annual rate of 32%, and foreign debt rose. Factors responsible for the erratic behavior of the economy were the completion of the Itaipu hydroelectric dam, bad weather for crops, and weak international commodity prices for agricultural exports. In 1987 the economy experienced a modest recovery because of improved weather conditions and stronger international prices for key agricultural exports. The recovery continued through 1988, with a bumper soybean crop and record cotton production. The government, however, must follow through on promises of reforms needed to deal with large fiscal and trade deficits, growing debt arrearages, and falling reserves.

      GDP: $7.4 billion, per capita $1,740; real growth rate 3.0% (1987)

      Inflation rate (consumer prices): 33.3% (1987)

      Unemployment rate: 11% (1988 est.)

      Budget: revenues $1,084 million; expenditures $1,098 million, including capital expenditures of $449 million (1987)

      Exports: $380 million (registered f.o.b., 1987); @m5commodities--cotton, soybean, timber, vegetable oils, coffee, tung oil, meat products; @m5partners--EC 37%, Brazil 25%, Argentina 10%, Chile 6%, US 6%

      Imports: $620 million (registered c.i.f., 1987); @m5commodities--capital goods 35%, consumer goods 20%, fuels and lubricants 19%, raw materials 16%, foodstuffs, beverages, and tobacco 10%; @m5partners--Brazil 30%, EC 20%, US 18%, Argentina 8%, Japan 7%

      External debt: $2.2 billion (1988)

      Industrial production: growth rate 2% (1987)

      Electricity: 2,369,000 kW capacity; 1,200 million kWh produced, 275 kWh per capita (1988)

      Industries: meat packing, oilseed crushing, milling, brewing, textiles, other light consumer goods, cement, construction

      Agriculture: oilseeds, soybeans, cotton, wheat, manioc, sweet potatoes, tobacco, corn, rice, sugarcane; self-sufficient in most foods; illegal producer of cannabis for international drug trade

      Aid: US commitments (FY70-87) $164 million; Western (non-US) countries, ODA and OOF bilateral commitments (1970-86), $828 million

      Currency: guarani (plural--guaranies); 1 guarani (G) = 100 centimos

      Exchange rates: guaranies (G) per US$1--550.00 (fixed rate since 1986), 339.17 (1986), 306.67 (1985)

      Fiscal year: calendar year

      NOTE: The information regarding Paraguay on this page is re-published from the 1989 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Paraguay Economy 1989 information contained here. All suggestions for corrections of any errors about Paraguay Economy 1989 should be addressed to the CIA.

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    Revised 15-Apr-03
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