Economy - overview:
Landlocked Paraguay has a market economy distinguished by a large informal sector, featuring re-export of imported consumer goods to neighboring countries, as well as the activities of thousands of microenterprises and urban street vendors. A large percentage of the population, especially in rural areas, derives its living from agricultural activity, often on a subsistence basis. Because of the importance of the informal sector, accurate economic measures are difficult to obtain.

On a per capita basis, real income has grown steadily over the past five years as strong world demand for commodities, combined with high prices and favorable weather, supported Paraguay's commodity-based export expansion. Paraguay is the fifth largest soy producer in the world. Drought hit in 2008, reducing agricultural exports and slowing the economy even before the onset of the global recession. The economy fell 3.8% in 2009, as lower world demand and commodity prices caused exports to contract. Severe drought and outbreaks of hoof-and-mouth disease in 2012 led to a brief drop in beef and other agricultural exports. Since 2014, however, Paraguay’s economy has grown at a 4% average annual rate due to strong production and high global prices, at a time when other countries in the region have contracted.

The Paraguayan Government recognizes the need to diversify its economy and has taken steps in recent years to do so. In addition to looking for new commodity markets in the Middle East and Europe, Paraguayan officials have promoted the country’s low labor costs, cheap energy from its massive Itaipu Hydroelectric Dam, and single-digit tax rate on foreign firms. As a result, the number of factories operating in the country – mostly transplants from Brazil - has tripled since 2014.

Corruption, limited progress on structural reform, and deficient infrastructure are the main obstacles to long-term growth. Judicial corruption is endemic and is seen as the greatest barrier to attracting more foreign investment. Paraguay has been adverse to public debt throughout its history, but has recently sought to finance infrastructure improvements to attract foreign investment.

GDP (purchasing power parity):
$88.91 billion (2017 est.)
$84.87 billion (2016 est.)
$81.36 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 91
[see also: GDP country ranks ]

GDP (official exchange rate):
$38.94 billion (2017 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
4.8% (2017 est.)
4.3% (2016 est.)
3.1% (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 58
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$12,800 (2017 est.)
$12,400 (2016 est.)
$12,000 (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 123
[see also: GDP - per capita country ranks ]

Gross national saving:
18.6% of GDP (2017 est.)
20.9% of GDP (2016 est.)
20% of GDP (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 108
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 66.7% (2017 est.)
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 11.3% (2017 est.)
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 17.3% (2017 est.)
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 0.3% (2017 est.)
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 46.6% (2017 est.)
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -42.2% (2017 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 17.9% (2017 est.)
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 27.7% (2017 est.)
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 54.5% (2017 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

Agriculture - products:
cotton, sugarcane, soybeans, corn, wheat, tobacco, cassava (manioc, tapioca), fruits, vegetables; beef, pork, eggs, milk; timber

Industries:
sugar processing, cement, textiles, beverages, wood products, steel, base metals, electric power

Industrial production growth rate:
2% (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 132
[see also: Industrial production growth rate country ranks ]

Labor force:
3.428 million (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 101
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 26.5%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 18.5%
[see also: Labor force - by occupation - industry country ranks ]
services: 55% (2008)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
5.7% (2017 est.)
6% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 85
[see also: Unemployment rate country ranks ]

Population below poverty line:
22.2% (2015 est.)
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: 1.5%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: 37.6% (2013 est.)
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Distribution of family income - Gini index:
51.7 (2014)
53.2 (2009)
country comparison to the world (CIA rank, may be based on non-current data): 11
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: 5.524 billion (2017 est.)
[see also: Budget - revenues country ranks ]
expenditures: 5.968 billion (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
14.2% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 202
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-1.1% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 84
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
19.5% of GDP (2017 est.)
18.9% of GDP (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 191
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
3.6% (2017 est.)
4.1% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 144
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
5.5% (31 December 2012)
6% (31 December 2011)
country comparison to the world (CIA rank, may be based on non-current data): 76
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
17% (31 December 2017 est.)
18.08% (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 28
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$5.117 billion (31 December 2017 est.)
$4.307 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 103
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$5.117 billion (31 December 2017 est.)
$4.307 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 106
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$12.91 billion (31 December 2017 est.)
$12.18 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 104
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
$962.3 million (31 December 2012 est.)
$958.1 million (31 December 2011 est.)
$42 million (31 December 2010 est.)
country comparison to the world (CIA rank, may be based on non-current data): 106
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
-$298 million (2017 est.)
$416 million (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 104
[see also: Current account balance country ranks ]

Exports:
$11.73 billion (2017 est.)
$10.86 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 83
[see also: Exports country ranks ]

Exports - partners:
Brazil 31.9%, Argentina 15.9%, Chile 6.9%, Russia 5.9% (2017)

Exports - commodities:
soybeans, livestock feed, cotton, meat, edible oils, wood, leather, gold

Imports:
$11.35 billion (2017 est.)
$9.617 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 95
[see also: Imports country ranks ]

Imports - commodities:
road vehicles, consumer goods, tobacco, petroleum products, electrical machinery, tractors, chemicals, vehicle parts

Imports - partners:
China 31.3%, Brazil 23.4%, Argentina 12.9%, US 7.4% (2017)

Reserves of foreign exchange and gold:
$7.877 billion (31 December 2017 est.)
$6.881 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 79
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$17.7 billion (31 December 2017 est.)
$16.48 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 96
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$6.235 billion (31 December 2017 est.)
$5.276 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 103
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$705.1 million (31 December 2017 est.)
$591.3 million (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 92
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
guarani (PYG) per US dollar -
5,628.1 (2017 est.)
5,680.7 (2016 est.)
5,680.7 (2015 est.)
5,160.4 (2014 est.)
4,462.2 (2013 est.)