The economy of Paraguay shrank 4.6 percent year-on-year in March 2019, following a 2.8 percent contraction in the previous month. It was the biggest contraction in the economic activity since May 2009, mainly due to a slowdown in agriculture, as soy output was affected by the weather; electricity production due to the water level of Parana River; construction; and manufacturing, of which meat, beverages, oil; chemicals and clothing and footwear, On the other hand, main positive contributions came from services, namely public administration, telecommunication, restaurants and hotels, and financial intermediation. Leading Economic Index in Paraguay averaged 3.70 percent from 1995 until 2019, reaching an all time high of 23 percent in April of 2013 and a record low of -10.30 percent in May of 2009.
Leading Economic Index in Paraguay is expected to be 0.70 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Leading Economic Index in Paraguay to stand at 3.40 in 12 months time. In the long-term, the Paraguay Economic Activity Index YoY Change is projected to trend around 3.10 percent in 2020, according to our econometric models.