Paraguay’s Economic Outlook for 2024 Brightens
The Central Bank of Paraguay (BCP) has recently increased its growth forecast for the country in 2024, indicating positive momentum in the economy. This upward revision reflects various sectors that are showing resilience and robust performance despite challenges. Let’s delve into the key points driving this optimistic outlook:
- Livestock Sector: There has been a significant surge in growth projections from 1.6% to 5.4% in the livestock sector. This leap is attributed to a higher slaughtering rate and intensified faneamiento, particularly in cattle, poultry, and swine, enhancing the sector’s value.
- Commerce: The trade sector also saw an upward revision from 4.9% to 5.1% due to better-than-expected dynamics. This positive trend is contributing to the overall economic growth trajectory.
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Challenges in Electricity and Water: Adverse weather conditions have posed challenges, resulting in a downward adjustment in projections from -2.8% to -4% for electricity and water sectors. Historically low levels of the Paraguay River have impacted these areas.
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Agriculture: Despite some setbacks in corn production, the agriculture sector is holding steady with a growth projection of 1.8%. Wheat production is expected to offset the decline in corn, maintaining equilibrium in the sector.
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Domestic Consumption and Investment: The BCP has observed a rising trend in domestic consumption, prompting an upward adjustment from 4.3% to 4.7%. Additionally, gross fixed capital formation is expected to expand from 5.0% to 5.8%, driven by investments in machinery and equipment.
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Inflation and Trade Balance: Inflation projections for 2024 remain stable at 4%, with no significant deviations anticipated. However, export expectations have been revised downwards from 1.5% to 0.4%, primarily due to decreased shipments of primary products such as corn.
With various sectors showcasing resilience and adaptability, Paraguay’s economic outlook for 2024 appears promising. The BCP’s updated growth projections reflect a balanced approach to economic forecasting, highlighting both strengths and challenges in the country’s economy. By closely monitoring these developments and trends, stakeholders can make informed decisions to support sustainable growth and prosperity in Paraguay.
