the obverse (hoist side at the
left) bears the national coat of arms (a yellow five-pointed star
within a green wreath capped by the words REPUBLICA DEL PARAGUAY,
all within two circles); the reverse (hoist side at the right) bears
the seal of the treasury (a yellow lion below a red Cap of Liberty
and the words Paz y Justicia (Peace and Justice) capped by the words
REPUBLICA DEL PARAGUAY, all within two circles)

Economy
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Economic overview: Paraguay has a market economy marked by a large
informal sector. The formal economy is largely oriented toward
services, but 45% of the population derive their living from
agricultural activity, often on a subsistence basis. The economy has
grown an average of 3% to 4% over the past five years. Population
has increased at 3% a year over the same period leaving per capita
income nearly stagnant. The informal sector is marked by both
reexport of imported consumer goods (electronics, whiskeys,
perfumes, cigarettes and office equipment) to neighboring countries
as well as by the activities of thousands of microenterprises and
urban street vendors. The Paraguayan Government has stated publicly
that it will continue its economic reform agenda in close
coordination with its Mercosur (Southern Cone Common Market)
partners. In 1995, the government also promised to undertake efforts
to formalize the financial sector, after a financial shock forced
the bail-out of the second and third largest banks. Paraguay's
continued integration into Mercosur also offers potential for
growth; it is closely linked with the success of foreign investment
promotion. Non-traditional exports, such as finished agricultural
products, light manufactures, and small consumer items, are growing
rapidly. Government reform efforts, including privatization, have
continued, but with little success in 1995.

GDP: purchasing power parity - $17 billion (1995 est.)

GDP real growth rate: 4.2% (1995 est.)

GDP per capita: $3,200 (1995 est.)

GDP composition by sector:
agriculture: 25.7%
industry: 25.8%
services: 48.5% (1994)

Inflation rate (consumer prices): 10.5% (1995)

Labor force: 1.692 million (1993 est.)
by occupation: agriculture 45%

Unemployment rate: 12% (1995)

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

Industries: meat packing, oilseed