MercoPress. South Atlantic News Agency

Paraguayan economy grows on soy exports and construction

Boosted by agriculture, construction and manufacturing Paraguay's GDP expanded at an annual 7.6% during the first quarter of 2008, according to the latest report from the country's Central Bank. Last year the Paraguayan economy expanded 6.4%.

The farming sector had the strongest performance with a 13.6% growth between January and March, helped by exports of soy bean which has become Paraguay's main export item. Livestock also had a dynamic expansion of 10.1%. However manufacturing managed a modest 4.1%. Construction on the other hand was by far the strongest sector with an annual rate growth of 24.6%, which can be explained by the activity generated at the Yacyretá dam. A huge hydroelectric complex shared by Paraguay and Argentina which is in its final stages. Paraguay has the rare privilege of being the only Mercosur country member with surplus energy from Yacyretá (shared with Argentina) and Itaipú, South America's largest hydroelectric complex, shared with Brazil.