The economy of Paraguay advanced 1.2 percent year-on-year in the fourth quarter of 2018, slowing from an upwardly revised 1.4 percent expansion in the previous period. It was the weakest growth rate since the first quarter of 2016, mainly due to slowdown in agriculture (0.9 percent vs 5.2 percent in Q3); and services (2.4 percent vs 3.6 percent). Additionally, output shrank in manufacturing (-0.1 percent vs 0.2 percent); and livestock, forestry, fishing and mining (-3.3 percent vs 3.3 percent). Meanwhile, output rebounded in utilities (1.7 percent vs -5.6 percent) and construction activity contracted less (-2.1 percent vs -5.0 percent). On a quarterly basis, the economy grew 0.8 percent. Considering full 2018, the GDP expanded 3.6 percent, easing from a 5.0 percent growth in 2017. GDP Annual Growth Rate in Paraguay averaged 3.34 percent from 1995 until 2018, reaching an all time high of 13.70 percent in the first quarter of 2010 and a record low of -7.40 percent in the third quarter of 2000.
GDP Annual Growth Rate in Paraguay is expected to be 3.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Annual Growth Rate in Paraguay to stand at 3.60 in 12 months time. In the long-term, the Paraguay GDP Annual Growth Rate is projected to trend around 3.80 percent in 2020, according to our econometric models.