The Paraguayan economy recorded cumulative growth of 5.6% in the first five months of 2026, according to preliminary data from the Monthly Indicator of Economic Activity (IMAEP), released by the Central Bank of Paraguay (BCP). In May, year-on-year growth was 1.9%.
The positive performance was driven by growth in the services, secondary and primary sectors. Agriculture was a strong performer, with the primary sector registering year-on-year growth of 6.7% in May and cumulative expansion of 9.9% for the year. The Ministry of Agriculture and Livestock (MAG) attributed this result to good prospects for the 2025/2026 harvest, with higher expected production of soybeans, sugarcane, cassava, beans, sunflower and tobacco. However, livestock performance was negative for the month due to a reduction in cattle slaughter, despite increases in the production of pork, poultry, milk and eggs.
The secondary sector grew 1.8% in May compared with the same month last year and accumulated an increase of 4.3% for the year, supported mainly by electricity generation and distribution and water supply. Construction, however, declined due to a slower pace in the execution of public works.
Manufacturing industries had a negative year-on-year variation of 1.6% in May but recorded cumulative growth of 3.2% in 2026. Activities such as the production of oils, chemical-pharmaceutical products, non-metallic minerals and leather showed positive performance.
The services sector accumulated an expansion of 5.1% for the year, driven by financial intermediation, government services, restaurants, hotels and telecommunications. The IMAEP indicator, excluding agriculture and binational companies, recorded cumulative growth of 4.9% through May.