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Paraguay's gross domestic product shrank 3 percent from a year earlier in the second quarter of 2019, the most since the second quarter of 2009, following a revised 2.1 percent contraction in the previous period. Output fell for manufacturing (-5.6 percent vs -2.1 percent in Q1), utilities (-12.0 percent vs -11.9 percent), construction (-12.0 percent vs -3.3 percent), agriculture (-11.4 percent vs -11.8 percent), and livestock, forestry, fishing and mining (-5.8 percent vs -5.6 percent). By contrast, service activity continued to grow (2.3 percent vs 2.5 percent).

The economy of Paraguay shrank 2 percent year-on-year in the first quarter of 2019, after expanding a downwardly revised 1 percent in the previous period. It was the first contraction since the last quarter of 2012, as output shrank further for agriculture (-11.9 percent from -8.1 percent in Q4); manufacturing (-2.1 percent from -0.1 percent); livestock, forestry, fishing and mining (-5.6 percent from -3.4 percent vs 3.3 percent); and construction (-3.3 percent from -2.1 percent). Also, output fell for utilities (-12 percent from 1.2 percent) and growth slowed for trade and services (2.6 percent from 3.4 percent). On a quarterly basis, the economy contracted 0.9 percent.

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.