Paraguay’s economy grew 4% year over year in the second quarter of 2026, easing from an upwardly revised 7.3% expansion in the previous quarter. Agriculture grew 11.1%, driven by higher production of soybeans, rice, beans, sunflower and tobacco, as well as corn, cotton, sesame and yerba mate. Net external demand made the largest contribution to GDP growth, with exports increasing 11.5% and imports falling 5.7%. Manufacturing expanded 1.8%, supported by higher production of oils, dairy products, sugar, beverages and tobacco, chemical and pharmaceutical products, paper, wood products, non-metallic minerals, base metals, and machinery and equipment. Construction grew 4.2%, reflecting increased activity in private projects and higher demand for key inputs. From the expenditure side, domestic demand fell 2.6% year over year, mainly due to an 11.8% contraction in gross fixed capital formation. Private consumption increased 3.2%, while government consumption rose 6.2%.