Paraguay's economic activity surges 5.6% in first half, led by services and agriculture

Paraguay's economy demonstrated robust growth in the first half of 2026, with preliminary data from the Imaep indicating a 5.6% expansion. This upswing was primarily fueled by strong performances in the services sector, the secondary sector, particularly electricity, water, and construction, and the agricultural sector.

The Indicator of Monthly Economic Activity (Imaep) registered a year-on-year increase of 5.6% in June alone, underscoring a sustained dynamism across the nation's main productive areas. The primary sector saw a significant year-on-year increase of 9.4% by the end of June, accumulating a 9.8% rise for the first half of the year. This agricultural growth was largely attributed to increased production of soybeans, sugarcane, cassava, beans, sunflowers, and tobacco, although slightly tempered by lower estimates for corn, cotton, sesame, and yerba mate.

The secondary sector also contributed positively, with a 5.6% year-on-year increase in June, leading to a 4.7% growth for the first semester. Key drivers included enhanced electricity generation and distribution, water supply, and sanitation services. The construction sector also experienced a year-on-year increase, driven by accelerated progress in private construction projects. Despite these positive trends, the Central Bank of Paraguay maintains its projection for the country's Gross Domestic Product (GDP) growth at 4.5% for the entirety of 2026.