The Paraguayan economy recorded growth of 5.6% in the first five months of 2026, according to the Monthly Economic Activity Indicator (Imaep) released by the Central Bank of Paraguay (BCP). In May, the indicator showed a 1.9% increase compared to the same month of the previous year.
The primary sector was the main driver of this performance, with accumulated growth of 9.9% through May. The advance in agriculture, based on the 2025/2026 crop season, was driven mainly by higher forecasted production of soybeans, sugarcane, cassava, beans, sunflower, and tobacco. Livestock, however, had a negative performance in the month due to a reduction in cattle slaughter, despite increases in the production of pork, poultry, milk, and eggs.
The secondary sector accumulated a 4.3% increase in the period. Activities such as electricity generation and distribution, as well as water supply and sanitation, showed growth. On the other hand, the construction sector recorded a contraction, affected by the slower pace of public works, while manufacturing had a negative variation of -1.6% in May, although it maintains accumulated growth of 3.2%.
The services sector grew 5.1% in the five months, but slowed in May, with an increase of only 0.6% in the annual comparison. Positive dynamics were observed in financial services, government services, restaurants, hotels, telecommunications, and real estate services. These results, however, were offset by declines in commerce, transportation, and domestic services.
The Imaep, which excludes agriculture and binational companies, has accumulated growth of 4.9% so far this year. The Gross Domestic Product (GDP) growth projection for 2026 remains at 4.2%, with an upward trend.