Economy - overview:

Landlocked Paraguay has a market economy marked by a large informal sector. This sector features both reexport of imported consumer goods to neighboring countries, as well as the activities of thousands of microenterprises and urban street vendors. Because of the importance of the informal sector, accurate economic measures are difficult to obtain. A large percentage of the population, especially in rural areas, derives its living from agricultural activity, often on a subsistence basis. On a per capita basis, real income has stagnated at 1980 levels. Most observers attribute Paraguay's poor economic performance to political uncertainty, corruption, limited progress on structural reform, and deficient infrastructure. The economy rebounded between 2003 and 2007, posting modest growth each year, as growing world demand for commodities combined with high prices and favorable weather to support Paraguay's commodity-based export expansion.

GDP (purchasing power parity):

$27.08 billion (2007 est.)

GDP (official exchange rate):

$10.87 billion (2007 est.)

GDP - real growth rate:

6.4% (2007 est.)

GDP - per capita (PPP):

$4,500 (2007 est.)

GDP - composition by sector:

agriculture: 22.4%
industry: 17.6%
services: 60% (2007 est.)

Labor force:

2.787 million (2007 est.)

Labor force - by occupation:

agriculture: 31%
industry: 17%
services: 52% (2007)

Unemployment rate:

5.6% (2007 est.)

Population below poverty line:

32% (2005 est.)

Household income or consumption by percentage share:

lowest 10%: 0.7%
highest 10%: 46.1% (2003)

Distribution of family income - Gini index:

56.8 (2008)

Inflation rate (consumer prices):

8.1% (2007)

Investment (gross fixed):

18.9% of GDP (2007 est.)

Budget:

revenues: $2.268 billion
expenditures: $2.469 billion (2007)

Public debt:

27.1% of GDP (2007)

Agriculture - products:

cotton, sugarcane, soybeans, corn, wheat, tobacco, cassava (tapioca), fruits, vegetables; beef, pork, eggs, milk; timber

Industries:

sugar, cement, textiles, beverages, wood products, steel, metallurgic, electric power

Industrial production growth rate:

-1% (2007 est.)

Electricity - production:

70 billion kWh (2007)

Electricity - consumption:

6 billion kWh (2007)

Electricity - exports:

64 billion kWh (2007)

Electricity - imports:

0 kWh (2007)

Oil - production:

0 bbl/day (2007 est.)

Oil - consumption:

28,000 bbl/day (2007 est.)

Oil - exports:

0 bbl/day (2007)

Oil - imports:

25,940 bbl/day (2007)

Oil - proved reserves:

0 bbl (1 January 2006 est.)

Natural gas - production:

0 cu m (2007 est.)

Natural gas - consumption:

0 cu m (2007 est.)

Natural gas - exports:

0 cu m (2007 est.)

Natural gas - imports:

0 cu m (2007)

Natural gas - proved reserves:

0 cu m (1 January 2007 est.)

Current account balance:

$162 million (2007 est.)

Exports:

$6.898 billion f.o.b. (2007)

Exports - commodities:

soybeans, feed, cotton, meat, edible oils, electricity, wood, leather

Exports - partners:

Uruguay 19%, Brazil 14.8%, Russia 9.1%, Argentina 7.6%, Chile 7.3%, Germany 6.1% (2006)

Imports:

$7.012 billion f.o.b. (2007)

Imports - commodities:

road vehicles, consumer goods, tobacco, petroleum products, electrical machinery, tractors, chemicals, vehicle parts

Imports - partners:

Brazil 23.7%, US 22.4%, Argentina 16.1%, China 10.2% (2006)

Economic aid - recipient:

$51.09 million (2005)

Reserves of foreign exchange and gold:

$2.463 billion (31 December 2007)

Debt - external:

$3.605 billion (31 December 2007 est.)

Stock of direct foreign investment - at home:

$2.057 million (2007)

Stock of direct foreign investment - abroad:

$NA

Market value of publicly traded shares:

$233.8 million (2005)

Currency (code):

guarani (PYG)

Exchange rates:

guarani per US dollar - 5,031 (2007), 5,672.8 (2006), 6,178 (2005), 5,974.6 (2004), 6,424.3 (2003)

Fiscal year:

calendar year