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2026.06.2617:22:22UTC+00Paraguay Economy Grows in Q1 2026

Paraguay’s economy grew 5.8% year-on-year in the first quarter of 2026, moderating from a 6.2% expansion in the previous quarter. Growth was broadly based across sectors.

The services sector expanded by 6.6%, underpinned by robust activity in transportation, financial intermediation, household and government services, real estate, restaurants and hotels, business services, telecommunications, information services, and valuation services.

Manufacturing output 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.

Agricultural activity advanced 8.2%, driven by stronger output of soybeans, sugarcane, cassava, beans, sunflower, and tobacco.

The construction sector grew 5.6%, reflecting faster execution of private-sector projects, while utilities output rose 4.7%, supported by solid performances in electricity distribution, water supply, and sanitation services.

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