Paraguay August Activity Growth Accelerates to 6.7%
Paraguay’s central bank said economic activity rose 6.7% year on year in August, faster than July’s 5.5% increase. The secondary sector, including manufacturing, electricity, and construction, grew 12.2%, while primary output fell 2.7% because of smaller maize, wheat, and cotton harvests. Growth for January through August reached 5.7%.
The Banco Central del Paraguay said its monthly activity gauge, the IMAEP, climbed 6.7% in August compared with the same month a year earlier. That followed a 5.5% July rise and left the January–August expansion at 5.7%.
The secondary sector advanced 12.2%, with manufacturing up 8.2% and construction also stronger; electricity output rose sharply. The primary sector slipped 2.7% on weaker maize, wheat, cotton and yerba mate harvests, while services increased 4.5%. A measure excluding farming and the Itaipú and Yacyretá dams rose 6.5%.
Faster activity may support jobs and incomes in manufacturing, construction and electricity, while weaker harvests could pressure rural households tied to maize, wheat, cotton and yerba mate. Slower transport, hotels, restaurants and telecoms may limit gains for workers in those services. Because Paraguay remains below investment grade, stronger growth could influence borrowing costs and public finances, though the benefit may depend on whether gains reach beyond dams and factories.