Economy and markets · Radar Inversión · October 12, 2026
Paraguay's Monthly Economic Activity Indicator (IMAEP) increased 6.7% year on year in August 2026, bringing growth for the first eight months to 5.7%, according to Central Bank of Paraguay (BCP) figures released on October 12. Beneath that overall expansion, productive sectors showed very different trajectories: industry and utilities grew strongly while primary activities contracted.
Industry, energy and construction drive growth
The secondary sector expanded 12.2% year on year in August and 5.9% in the year to date. Growth was led by electricity generation and distribution, water and sanitation services, and construction, supported by a faster pace of public and private projects.
Manufacturing, which is a component of the secondary sector rather than an additional sector, grew 8.2% year on year and 4.2% in the first eight months. Stronger activities included edible oils, dairy, milling, baking, pharmaceuticals, non-metallic minerals and fabricated metal products. Several areas, including meat processing, textiles, wood and equipment production, weakened.
Services rise, but gains are uneven
Services grew 4.5% year on year in August and 4.9% in the first eight months. Trade, financial intermediation, real estate and information services contributed positively.
However, transport, business services, restaurants and hotels, telecommunications and household services recorded weaker activity. Investors should therefore focus on business-specific demand rather than assuming all service providers benefited from national growth.
Primary production declines in August
Primary-sector activity fell 2.7% compared with August 2025 but remained 8.5% higher in the year to date. Reduced output of corn, wheat, cotton and yerba mate weighed on agriculture, according to the agricultural estimates referenced in reporting on the BCP figures.
Parts of livestock and dairy activity performed better, including pig and poultry slaughtering, raw milk and eggs. The August fall alongside positive accumulated growth highlights uneven timing and performance across primary production.
Implications for Paraguay's investors
The latest reading points to momentum in electricity, infrastructure, construction and selected manufacturing activities. That is not in itself a recommendation to invest: project analysis still requires evidence on operating capacity, purchase contracts, productivity, margins, logistics and financing costs.
The IMAEP excluding agriculture and binational enterprises rose 6.5% year on year and 5.1% in the year to date, offering a complementary view of activities less exposed to crop production and binational electricity output.
A preliminary indicator, not final GDP
The IMAEP is a preliminary monthly measure of production at constant prices. It is not Paraguay's definitive GDP growth rate and should not be translated directly into company earnings, realized investment flows or tax revenue.
Investors should next monitor September activity, the BCP's sales turnover indicator (ECN), execution of public and private works, and forthcoming national accounts revisions. The critical message is that aggregate growth masks substantial sector differences.
Radar's assessment: August's 6.7% overall growth is positive, but a 12.2% increase in secondary activity contrasts with a 2.7% drop in primary production. Investment decisions should be grounded in sector-level fundamentals, not the headline alone.
Exclusive Radar Inversión editorial visualization of year-on-year rates attributed to BCP figures. Manufacturing is included within the secondary sector and must not be added to that category.
Data reporting and methodology: Última Hora, 12/10/2026; Revista PLUS, 12/10/2026; BCP — IMAEP y metodología.