|
Paraguay ECONOMY
Gross Domestic Product (GDP): Approximately US$3.4
billion in 1986, roughly US$1,000 per capita. Substantial growth
recorded in late 1970s, followed by decline in early 1980s and some
recovery in mid- to late 1980s.
Agriculture: About 23 percent of GDP in 1985; also
accounted for approximately half of all employment and virtually
all export earnings. In 1981 about 7 percent of land dedicated to
crop production, 20 percent to forestry, 26 percent to livestock,
and 47 percent to other purposes. Main crops--soybeans, cotton,
tobacco, coffee, sugarcane, oilseeds, manioc (cassava), maize,
beans, peanuts, and wheat. Highly skewed distribution of land.
Industry: About 23 percent of GDP in 1986, including
manufacturing (over 16 percent of GDP) and construction (nearly 6
percent of GDP). Manufacturing generally small-scale and focused on
consumer goods. Construction activity fluctuated dramatically
during the mid- to late 1980s following several years of brisk
growth.
Energy: Less than 3 percent of GDP in 1986, but
tremendous hydroelectric growth potential. Expected to become
world's largest exporter of electricity in 1990s.
Services: About 51 percent of GDP in 1986. Included
financial services, transportation and communications, informal
services, government services, and tourism.
Imports: Approximately US$898 million in 1986, over 40
percent of which unregistered. Imports mainly manufactured
products, capital goods, and fuels.
Exports: Approximately US$371 million in 1986, almost 40
percent of which unregistered. Soybeans and cotton over 60 percent
of exports.
Balance of Payments: Acute balance of payments situation
in late 1980s, result of an increasing merchandise trade deficit
and a decreased level of private capital investment. International
reserves equalled less than four months of imports. From 1980 to
1987, indebtedness more than doubled, to roughly US$2 billion. Debt
as a percentage of GDP climbed to above 50 percent.
Exchange Rate: Guaraní (G) pegged to United States dollar
from 1960 to 1982 but devalued numerous times during the mid- to
late 1980s. Five exchange rates in use in 1987, reduced to three in
mid-1988. Free-market rate exceeded G1,000=US$1 by early 1989.
Fiscal Year: Calendar year.
Fiscal Policy: Substantial cutbacks in current and
capital expenditures in mid-1980s resulted in 1986 budget deficit
under 1 percent of GDP. In 1986 public-sector deficit reached 7
percent of GDP because of parastatals' poor financial performance
and access to preferential exchange rates. Some rates eliminated in
1988.
Data as of December 1988
|
