Breaking: Paraguay’s Central Bank Forecasts Massive Growth Surge in 2024!

Paraguay’s Economy on the Rise in 2024

The Central Bank of Paraguay recently announced an increase in the country’s economic growth forecast for the year 2024, raising it from 3.8% to 4%. This upward revision reflects positive trends in various sectors contributing to Paraguay’s economic vibrancy.

Key Points of Growth Projections:
1. Livestock Sector: A significant boost from 1.6% to 5.4% was observed due to a higher rate of slaughtering. Chief Economist César Yunis highlighted the increased faneamiento in cattle, poultry, and swine, resulting in added value within the sector.

1. Trade Sector: Commerce projections were revised upwards from 4.9% to 5.1%, indicating better dynamics than previously anticipated. This sector is showing resilience and productivity in line with economic growth.

2. Challenges in Electricity and Water: Adverse weather conditions led to a downward adjustment in projections for these sectors from -2.8% to -4%, primarily due to historically low levels of the Paraguay River. Export expectations also decreased, affecting the trade balance negatively.

3. Agriculture and Other Sectors: Despite challenges in agriculture, with a decrease in corn production, other areas like wheat production compensated for this decline. Manufacturing, construction, government, and other services maintained stable growth patterns as expected.

4. Domestic Consumption and Capital Formation: With domestic consumption on the rise, the BCP adjusted projections from 4.3% to 4.7%. Similarly, gross fixed capital formation saw an increase from 5.0% to 5.8%, driven by investments in machinery and equipment, reflecting confidence in economic stability.

Inflation and Economic Stability:
The BCP reiterated that inflation projections for 2024 remain at 4%, with no significant imbalances observed that could deviate inflation from the expected trajectory. This forecast indicates a steady and controlled economic environment conducive to sustainable growth.

In Conclusion:
Paraguay’s economy is showing promising signs of growth and resilience in the face of challenges. The Central Bank’s revised projections highlight the country’s potential for continued prosperity and stability in the coming year. It is crucial for stakeholders and policymakers to support these positive trends to ensure sustainable economic development in Paraguay.