t recovery because of improved weather
conditions and stronger international prices for key agricultural exports. The
recovery continued through 1988, with a bumper soybean crop and record cotton
production. The government, however, must follow through on promises of reforms
needed to deal with large fiscal deficits, growing debt arrearages,
and falling reserves.

GDP: $8.9 billion, per capita $1,970; real growth rate 5.2% (1989 est.)

Inflation rate (consumer prices): 30% (1989 est.)

Unemployment rate: 12% (1989 est.)

Budget: revenues $609 million; expenditures $909 million,
including capital expenditures of $401 million (1988)

Exports: $1,020 million (registered f.o.b., 1989 est.);
commodities--cotton, soybean, timber, vegetable oils, coffee, tung oil,
meat products; partners--EC 37%, Brazil 25%, Argentina 10%, Chile 6%,
US 6%

Imports: $1,010 million (registered c.i.f., 1989 est.);
commodities--capital goods 35%, consumer goods 20%, fuels and lubricants
19%, raw materials 16%, foodstuffs, beverages, and tobacco 10%;
partners--Brazil 30%, EC 20%, US 18%, Argentina 8%, Japan 7%

External debt: $2.9 billion (1989 est.)

Industrial production: growth rate 2% (1987)

Electricity: 5,169,000 kW capacity; 15,140 million kWh produced,
3,350 kWh per capita (1989)

Industries: meat packing, oilseed crushing, milling, brewing,
textiles, other light consumer goods, cement, construction

Agriculture: accounts for 25% of GDP and 50% of labor force; cash
crops--cotton, sugarcane; other crops--corn, wheat, tobacco, soybeans, cassava,
fruits, and vegetables; animal products--beef, pork, eggs, milk; surplus
producer of timber; self-sufficient in most foods

Illicit drugs: illicit producer of cannabis for the international
drug trade with an estimated 300 hectares cultivated in 1988; important
transshipment point for Bolivian cocaine headed for the US and Europe

Aid: US commitments, including Ex-Im (FY70-88), $168 million; Western
(non-US) countries, ODA and OOF bilateral commitments (1970-87), $994 million

Currency: guarani (plural--guaranies);
1 guarani (G) = 100 centimos

Exchange rates: guaranies (G) per US$1--1,200.20 (November 1989;
floated in February 1989), 550.00 (fixed rate 1986-February 1989),
339.17 (1986), 306.67 (1985)

Fiscal year: calendar year

- Communications
Railroads: 970 km total; 440 km 1.435-meter standard gauge, 60 km
1.000-meter gauge, 470 km various narrow gauge (privately owned)