Economy of Paraguay

Economy of Paraguay
	Asunción is the capital and largest city of Paraguay
Currency	Paraguayan guaraní (PYG, ₲)
Fiscal year	Calendar year
Trade organizations	WTO, Mercosur, Prosur
Country group	Developing/Emerging; Upper-middle income economy;
Statistics
Population	6,109,644 (2022 census)
GDP	$45.47 Billion (nominal; 2025); $136.44 Billion (PPP; 2025);
GDP rank	100th (nominal; 2025); 92th (PPP; 2025);
GDP growth	5.0% (2023); 4.0% (2024); 3.8% (2025); 3.5% (2026f);
GDP per capita	$6,520 (nominal; 2025); $19,570 (PPP; 2025);
GDP per capita rank	106th (nominal; 2025); 95th (PPP; 2025);
GDP by sector	agriculture: 17.9%; industry: 27.7%; services: 54.5%; (2017 est.);
Inflation (CPI)	3.7% (2020 est.)
Population below poverty line	24.2% (2018); 17.0% on less than $5.50/day (2018);
Gini coefficient	46.2 high (2018)
Human Development Index	0.731 high (2022) (102nd); 0.582 medium (94th) IHDI (2022);
Labor force	3,530,715 (2019); 67.4% employment rate (2018);
Labor force by occupation	agriculture: 26.5%; industry: 18.5%; services: 55%; (2008);
Unemployment	5.7% (2017 est.)
Main industries	sugar, cement, textiles, beverages, wood products, steel, base metals, electric power
External
Exports	$11.73 billion (2017 est.)
Export goods	soybeans, feed, cotton, meat, edible oils, wood, leather
Main export partners	Brazil 31.9%; Argentina 15.9%; Chile 6.9%; Russia 5.9%; (2017);
Imports	$11.35 billion (2017 est.)
Import goods	road vehicles, consumer goods, tobacco, petroleum products, electrical machinery, tractors, chemicals, vehicle parts
Main import partners	Brazil 24%; United States 22%; China 17%; Argentina 10%; Chile 5%; (2017);
FDI stock	$6.235 billion (31 December 2017 est.); Abroad: $705.1 million (31 December 2017 est.);
Current account	−$298 million (2017 est.)
Gross external debt	$17.7 billion (31 December 2017 est.)
Public finances
Government debt	19.5% of GDP (2017 est.)
Foreign reserves	$7.877 billion (31 December 2017 est.)
Budget balance	−1.1% (of GDP) (2017 est.)
Revenues	5.524 billion (2017 est.)
Expenses	5.968 billion (2017 est.)
Credit rating	Standard & Poor's:; BB (Domestic); BB (Foreign); BB+ (T&C Assessment); Outlook: Positive; Moody's:; Ba2; Outlook: Stable;
	All values, unless otherwise stated, are in US dollars.

The economy of Paraguay is a market economy that is highly dependent on agriculture products. In recent years, Paraguay's economy has grown as a result of increased agricultural exports, especially soybeans. Paraguay has the economic advantages of a young population and vast hydroelectric power. Its disadvantages include the few available mineral resources, and political instability. The government welcomes foreign investment.

Agriculture represents 30% of its GDP. According to official figures, 5% of landowners own 90% of the land.