Specifically, agriculture experienced a growth of 23.3%, while electricity and water activity reached 16%.

The Gross Domestic Product (GDP) of Paraguay grew by 4.7% year-on-year in 2023, driven mainly by agriculture and electricity and water activities, as disclosed this Tuesday by the Central Bank of Paraguay.

Specifically, agriculture experienced a growth of 23.3%, while electricity and water activity reached 16%. On the contrary, construction fell 7.5% year-on-year.

On the demand side, private consumption grew by 2.7% and consumption by the Santiago Peña government by 3.6% year-on-year. Meanwhile, gross capital formation experienced a negative result, with a drop of 15% in year-on-year terms.

Exports grew by 36.7% throughout the year, while imports reached an increase of 14.1%.

Meanwhile, regarding the fourth quarter of the year, Paraguay's GDP expanded by 4.9% compared to the same quarter of the previous year, being the second best quarter of the year in interannual terms, only behind the 5.6 % increase in the second quarter.

In this case, livestock drove growth in the fourth quarter, with a variation of 13.8%. The manufacturing sector (9.6% increase) and the electricity and water sector (8.3%) also had increases above average. On the contrary, agriculture and construction experienced year-on-year falls of 5.8% and 8.5%, respectively.

From a demand perspective, private consumption grew by 3.1%, while government consumption contracted by 2.4%. Gross capital formation also experienced a drop of 8.3%.

Regarding the external balance, it is worth highlighting the notable increase of 44.4% in exports compared to the fourth quarter of 2022. Imports increased by 23.2%.