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 rose 1.9% compared with the same month of the previous year.
The primary sector accumulated growth of 9.9% through May. Agriculture, based on the latest updates to the 2025/2026 crop season, grew mainly because of higher forecast production of soybeans, sugarcane, cassava, beans, sunflower and tobacco. Livestock, however, performed negatively in May, mainly due to a decline in cattle slaughter, although increases were reported in pig and poultry slaughter and in raw milk and egg production.
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. Construction contracted, affected mainly by the slower pace of public works. Manufacturing fell 1.6% year over year in May but remained up 3.2% through May.
The services sector grew 5.1% in the five months, although it rose only 0.6% year over year in May. Positive trends were observed in financial services, government services, restaurants and hotels, telecommunications, information and validation services, business services and real estate services. These positive results were tempered by declines in commerce, transportation and household services.
The Imaep excluding agriculture and binational companies accumulated growth of 4.9% through May. The GDP growth projection for 2026 remains at 4.2%, with an upward bias, according to experts.