Paraguay economy shrinks 3.0% on Q2, worst fall since 2009

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Paraguay economy shrinks 3.0% on Q2, worst fall since 2009

Late on Monday, the 30th of September 2019, Paraguay’s Central Bank said that the middle-income country, whose miraculous growth in the 1970s was halted following a global recession in 1986 and remained stagnated since then, had witnessed a contraction of its Gross Domestic Product (GDP) by 3.0 per cent in the second quarter on a quarterly basis, remarking the Latin American nation’s worst economic downturn since the era of great financial depression of 2008-2009.

Aside from that, followed by the reveal of the report late on Monday (September 30th), industry analysts were quoted saying that a perilous backdrop of the nation’s key sectors including livestock and grains on Q2, 2019, had botched to counter a global economic slowdown, which in effect had pushed the nation’s economy towards a steep contraction.

In point of fact, Paraguay, the landlocked country between Argentina, Brazil & Bolivia, home to subtropical forest, large swampland and Chao, had the biggest agricultural industry in the Latin America. Meanwhile, according to the Paraguay’s Central Bank statement released late on Monday (September 30th), the grief-sickened nation’s economy was contracted by 2.5 per cent during the first half of this year, however, the founding member of EU-Mercosur free trade pact, Paraguay, had kept its 2019 growth projection unaltered at 1.5 per cent, as the country had been banking heavily on an economic recovery stoked by an increase in soy crop production over the next six months of its fiscal year.

Besides, adding further strains on to the deeply wounded Latam economy’s agriculture sector that had witnessed a 11.9 per cent plunge on Q2, 2019, while the landlocked nation’s manufacturing sector, accountable for 27.7 per cent of its entire GDP, shrank by 5.6 per cent on second quarter this year, Paraguay’s Central bank said late on Monday (September 30th).