living from agricultural
activity, often on a subsistence basis. The formal economy has grown
an average of about 3% over the past five years. However, population
has increased at about the same rate over the same period, leaving per
capita income nearly stagnant. The WASMOSY government has continued to
pursue its economic reform agenda, albeit with limited success because
of in-fighting in the ruling party and resistance from the opposition.
Paraguay's ongoing integration into Mercosur (the Southern Cone Common
Market) offers potential for investment and growth.

GDP: purchasing power parity-$21.9 billion (1997 est.)

GDP-real growth rate: 2.6% (1997 est.)

GDP-per capita: purchasing power parity-$3,900 (1997 est.)

GDP-composition by sector:
agriculture: 26.4%
industry: 24.9%
services: 48.7% (1995)

Inflation rate-consumer price index: 6.2% (1997)

Labor force:
total: 1.8 million (1995 est.)
by occupation: agriculture 45%

Unemployment rate: 8.2% (urban) (1996 est.)

Budget:
revenues: $1.25 billion
expenditures: $1.66 billion, including capital expenditures of $357
million (1995 est.)

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

Industrial production growth rate: 5.1% (1995)

Electricity-capacity: 6.533 million kW (1995)

Electricity-production: 40.05 billion kWh (1995)
note: exported about 36.96 billion kWh of electricity to Brazil

Electricity-consumption per capita: 577 kWh (1995)

Agriculture-products: cotton, sugarcane, soybeans, corn, wheat,
tobacco, cassava (tapioca), fruits, vegetables; beef, pork, eggs,
milk; timber

Exports:
total value: $1.1 billion (f.o.b., 1997 est.)
commodities: cotton, soybeans, timber, vegetable oils, meat products,
coffee, tung oil
partners: Brazil 48%, Netherlands 22%, Argentina 9%, US 4%, Uruguay
3%, Chile 2% (1997)

Imports:
total value: $2.5 billion (c.i.f., 1996 est.)
commodities: capital goods, consumer goods, foodstuffs, raw materials,
fuels
partners: Brazil 29%, US 22%, Argentina 14%, Hong Kong 9% (1995)

Debt-external: $1.3 billion (1996)

Economic aid:
recipient: ODA, $38 million (1993)

Currency: 1 guarani (G) = 100 centimos

Exchange rates: guaranies (G) per US$-2,528.8 (January 1998), 2,191.0
(1997), 2,062.8 (1996), 1,970.4 (1995), 1,911.5 (1994), 1,744.3 (1993)

Fiscal year: calendar year

Communications

Telephones: 88,730 (1985 est.)

Telephone system