Paraguay Economy Profile 2008

Economy - overview

Landlocked Paraguay has a market economy marked by a large informal sector. This sector features both reexport of imported consumer goods to neighboring countries, as well as the activities of thousands of microenterprises and urban street vendors. Because of the importance of the informal sector, accurate economic measures are difficult to obtain. A large percentage of the population, especially in rural areas, derives its living from agricultural activity, often on a subsistence basis. On a per capita basis, real income has stagnated at 1980 levels. Most observers attribute Paraguay's poor economic performance to political uncertainty, corruption, limited progress on structural reform, and deficient infrastructure. The economy rebounded between 2003 and 2007, posting modest growth each year. Growing world demand for commodities combined with high prices and favorable weather to support Paraguay's commodity-based export expansion.

GDP (purchasing power parity)

$26.55 billion (2007 est.)

GDP (official exchange rate)

$9.34 billion (2007)

GDP - real growth rate

4.5% (2007)

GDP - per capita (PPP)

$4,000 (2007 est.)

GDP - composition by sector

agriculture: 21.9%
industry: 18.7%
services: 59.4% (2007 est.)

Population below poverty line

32% (2005 est.)

Household income or consumption by percentage share

lowest 10%: 0.7%
highest 10%: 46.1% (2003)

Inflation rate (consumer prices)

6% (2007)

Investment (gross fixed)

19.8% of GDP (2007 est.)

Labor force

2.735 million (2007)

Labor force - by occupation

agriculture: 31%
industry: 17%
services: 52% (2007)

Unemployment rate

11.4% (2007 est.)

Distribution of family income - Gini index

56.8 (2008)

Budget

revenues: $2.268 billion
expenditures: $2.469 billion (2007)

Public debt

27.1% of GDP (2007)

Industries

sugar, cement, textiles, beverages, wood products, steel, metallurgic, electric power

Industrial production growth rate

1.9% (2007)

Electricity - production

70 billion kWh (2007)

Electricity - consumption

6 billion kWh (2007)

Electricity - exports

64 billion kWh (2007)

Electricity - imports

0 kWh (2007)

Oil - production

0 bbl/day (2007 est.)

Oil - consumption

28,000 bbl/day (2007 est.)

Oil - imports

25,940 bbl/day (2007)

Oil - exports

0 bbl/day (2007)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2007 est.)

Natural gas - consumption

0 cu m (2007 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007)

Natural gas - proved reserves

0 cu m (1 January 2007 est.)

Current Account Balance

-$73 million (2007)

Agriculture - products

cotton, sugarcane, soybeans, corn, wheat, tobacco, cassava (tapioca), fruits, vegetables; beef, pork, eggs, milk; timber

Exports

$6.898 billion f.o.b. (2007)

Exports - commodities

soybeans, feed, cotton, meat, edible oils, electricity, wood, leather

Exports - partners

Uruguay 22%, Brazil 17.2%, Russia 11.9%, Argentina 8.8%, Chile 6.9% (2006)

Imports

$7.012 billion f.o.b. (2007)

Imports - commodities

road vehicles, consumer goods, tobacco, petroleum products, electrical machinery, tractors, chemicals, vehicle parts

Imports - partners

China 27%, Brazil 20%, Argentina 13.6%, Japan 8.3%, US 6.4% (2006)

Reserves of foreign exchange and gold

$2.463 billion (31 December 2007)

Debt - external

$3.632 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$2.057 million (2007 est.)

Stock of direct foreign investment - abroad

$NA

Market value of publicly traded shares

$233.8 million (2005)

Economic aid - recipient

$51.09 million (2005)

Currency (code)

guarani (PYG)

Exchange rates

guarani per US dollar - 5,031 (2007), 5,672.8 (2006), 6,178 (2005), 5,974.6 (2004), 6,424.3 (2003)

Fiscal year

calendar year