Paraguay's economy shrinks in Q2 as farm exports lose shine

viernes 26 de septiembre de 2014 13:35 GYT
 

BUENOS AIRES, Sept 26 (Reuters) - Paraguay's economy contracted 0.6 percent in the second quarter from the first three months of the year, central bank data showed on Friday, as the soy-exporting nation struggles to maintain the stellar growth of 2013.

Gross domestic product grew 2.2 percent in the first quarter and the central bank said it would be revising its full-year forecast of 4.8 percent in October.

The economy expanded a whopping 14.2 percent in 2013, revised upwards on Friday from 13.6 percent, on the back of strong agricultural output.

Paraguay is the world's fourth largest exporter of soybeans, whose prices have been hit by multi-year lows on global markets due to a bumper crop in the United States.

The central bank said that on a year-on-basis, gross domestic product increased 3 percent in first quarter from a revised 3.9 percent in the previous quarter. Agricultural output increased 2.1 percent.

Exports fell 1.2 percent on the same quarter last year due to a fall in electricity sales to neighbouring Brazil and Argentina which both fell into recession this year. Imports dipped 1 percent. (Reporting by Mariel Cristaldo and Daniela Desantis; Writing by Richard Lough; Editing by Diane Craft)