The Paraguayan economy recorded accumulated 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, the year-on-year growth was 1.9%.
The positive performance was driven by the dynamism of the services, secondary, and primary sectors. Agriculture was a highlight, with the primary sector registering a year-on-year growth of 6.7% in May and an accumulated 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 to 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 maintain an accumulated growth of 3.2% in 2026. Activities such as the production of oils, chemical-pharmaceutical products, non-metallic minerals, and leathers 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 accumulated growth of 4.9% through May.
In parallel, a report from the Getulio Vargas Foundation (FGV) positions Paraguay as the leader in economic climate in the region for the first quarter of 2026. The country's Economic Climate Indicator (ICE) stood at 124 points, above the Latin American average of 73 points, surpassing economies such as Brazil, Argentina, and Mexico. Analyst Stan Canova cited the growth of Paraguay's GDP, projected at 4.2% for 2026 by the BCP, as a key factor for this optimism, although he warned of the risks of a potential fuel price shock due to global geopolitical tensions.