Paraguay's central bank raises 2016 growth forecast to 3.5pc

ASUNCION: Paraguay's central bank said on Thursday the country's economy would expand by 3.5 percent this year, up from a previous forecast of 3.0 percent, boosted by faster growth in livestock, meat and construction output.

Electrical production, a barometer of industrial activity, was also seen strengthening, the central bank said in a report.

Construction will likely expand 8 percent in 2016 as the government and private sector move ahead with infrastructure projects, the central bank said. However, it now expects weaker growth in services than before. Paraguay is the world's fourth-biggest soybean exporter.

The central bank said domestic consumption and public spending in the small South American country were offsetting the impact from slumping global commodity prices and economic problems in neighboring Brazil and Argentina.