ASUNCION, Oct 1 (Reuters) - Paraguay’s central bank revised its 2014 economic growth forecast down to 4.0 percent on Wednesday from a previous estimate of 4.8 percent, citing deteriorating external conditions.
“Around 4 percent is the figure we have,” the bank’s president, Carlos Fernandez Valdovinos, told reporters.
The economy of the world’s fourth largest soybean exporter contracted in the second quarter of this year. In 2013, the economy recorded stellar growth of 14.2 percent.
Soybean prices are at multiyear lows due to a bumper crop in the United States, while Paraguay’s electricity exports have fallen on the back of declining activity in economically ailing Brazil and Argentina.
Consumer prices rose 4.1 percent in the year to September, the central bank reported, within its target band of 5 percent, plus or minus or 2.5 percent points. (Reporting by Daniela Desantis; Writing by Richard Lough; Editing by Peter Galloway)