Landlocked Paraguay has become the new 'soybean king' with a harvest of over 9 million tons, a new record, 13% compared to the previous crop, according to the figures released by the Paraguayan Chamber of Grains and Oilseeds Exporters, Capeco.
Paraguay’s central bank increased the country’s growth estimate for 2013 from 13% to 13.6%, the highest for Latinamerica. Estimates have been on the increase since October last year, 9.5%; December, 10.5%; April 13% and now, 13.6% which compares to the 0.9% contraction of 2012, when drought and Foot and Mouth Disease hit Paraguay’s main export items, soybeans and beef.
Paraguay’s GDP expanded 13.3% in the second quarter of this year boosted by agriculture and beef exports, according to the latest release from the Central bank. Agriculture has proved the most dynamic sector with 6.2% growth helping Paraguay to have the fastest growing economy this year in Latam following on a 0.9% retraction last year, because of an extended drought.
The Paraguayan government said that the recently Senate approved controversial 10% levy on all exports of oilseeds and grains is “non applicable’ since it would need an amendment of the Customs Code, and recommends the implementation of alternative taxes.
Consumer prices in Paraguay dropped 0.3% during May which brings the accumulated five month inflation to 0.2%, reported the Central bank. The percentage is considerably lower than May a year ago when it reached 0.4% and had accumulated 3.2%. Twelve month inflation in May reached 0.9% which compares favourably with the 3.8% of a year ago
The Paraguayan economy is poised to expand 11.3% next year propped by the strong recovery from agriculture according to Pricewaterhouse Coopers, an estimate far more optimist than the 9.5% of the government budget.
Paraguay’s economy is forecasted to contract 1.5% in 2012 but in 2013 will soar 9.5% based on a “super soybean crop” and the recovery of other sectors, according to the latest report from the country’s Central bank confirming its previous 2012 GDP estimate.
Meat producers in Brazil's Mato Grosso do Sul state are lobbying the government to approve soy imports from neighbouring Bolivia after drought shrank supplies in the world's second grower, a state official and analysts.