Economy (Paraguay)
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     Overview:
         Agriculture, including forestry, accounts for about 25% of GDP, employs
         about 45% of the labor force, and provides the bulk of exports. Paraguay has
         no known significant mineral or petroleum resources but does have a large
         hydropower potential. Since 1981 economic performance has declined compared
         with the boom period of 1976-81, when real GDP grew at an average annual
         rate of nearly 11%. During the period 1982-86 real GDP fell in three of five
         years, inflation jumped to an annual rate of 32%, and foreign debt rose.
         Factors responsible for the erratic behavior of the economy were the
         completion of the Itaipu hydroelectric dam, bad weather for crops, and weak
         international commodity prices for agricultural exports. In 1987 the economy
         experienced a minor recovery because of improved weather conditions and
         stronger international prices for key agricultural exports. The recovery
         continued through 1990, on the strength of bumper crops in 1988-89. In a
         major step to increase its economic activity in the region, Paraguay in
         March 1991 joined the Southern Cone Common Market (MERCOSUR), which includes
         Brazil, Argentina, and Uruguay. During 1991 the government began to more
         seriously address its arrearages with international creditors and its
         domestic fiscal problems. Inflation was cut in third, but the foreign trade
         deficit widened to more than $1 billion. For the long run, the government
         must press forward with general market-oriented economic reforms.
     GDP:
         exchange rate conversion - $7.0 billion, per capita $1,460; real growth rate
         3.0% (1991 est.)
     Inflation rate (consumer prices):
         15% (1991 est.)
     Unemployment rate:
         14% (1991 est.)
     Budget:
         revenues $1.2 billion; expenditures $1.2 billion, including capital
         expenditures of $487 million (1991)
     Exports:
         $642 million (f.o.b., 1991)
       commodities:
         cotton, soybean, timber, vegetable oils, coffee, tung oil, meat products
       partners:
         EC 37%, Brazil 25%, Argentina 10%, Chile 6%, US 6%
     Imports:
         $1.85 billion (c.i.f., 1991)
       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:
         $1.7 billion (1991 est.)
     Industrial production:
         growth rate 5.9% (1989 est.); accounts for 16% of GDP
     Electricity:
         5,578,000 kW capacity; 15,447 million kWh produced, 3,219 kWh per capita
         (1991)
     Industries:
         meat packing, oilseed crushing, milling, brewing, textiles, other light
         consumer goods, cement, construction
     Agriculture:
         accounts for 25% of GDP and 44% 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